The Australian dollar dropped during the current trading session, reaching the lowest level in more than two months against the Japanese yen. Both domestic and overseas fundamentals contributed to the drop of the currency.
The Westpac-Melbourne Institute Leading Index fell in February, though the growth momentum remained above trend. Prices for iron ore, Australia’s major export commodity, dropped this week, hurting the Aussie. The market sentiment was also an unfavorable factor for the Australian dollar as traders were largely avoiding commodity-related currencies, which are usually associated with risk.
AUD/USD dropped from 0.7685 to 0.7644 as of 9:36 GMT today, trading near the lowest level in a week. AUD/JPY slid from 85.90 to 84.99, touching the lowest since January 6.
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