Easing is an official part of Australian monetary policy right now, and that is causing a drop for the Aussie. The Australian dollar is losing ground against its major counterparts as RBA officials reiterate a position friendly to further easing.
Earlier, the Governor of the Reserve Bank of Australia, Glenn Stevens, spoke about the possible need for continued monetary easing. Citing the idea that recent rate cuts were working to help stabilize the economy, he talked about the possibility of further easing, if necessary.
Stevens also expressed his belief that a weaker Aussie was necessary at this point, since the Australian economy has been slowing. With his words, acknowledging the slowdown and embracing Aussie weakness, Forex traders sold more of the Down Under currency, believing that more easing could very well be on the way.
Aussie, a commodity currency, is also affected by struggling commodities, particularly gold. With gold and oil prices lower, commodity currencies are struggling a bit. The Australian economy is also linked to the Chinese economy, and continued struggles by China might weigh further on the Aussie.
At 13:34 GMT AUD/USD is down to 0.9093 from the open at 0.9207. AUD/JPY is down to 89.1045 from the open at 90.1950. EUR/AUD is up to 1.4620 from the open at 1.4406.
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