Aussie dollar slide continues

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Aussie dollar ( FXA , quote ) slide continues pushing through 1.00 and is looking to test June '12 lows around .9612.  Commodity weakness along with the Royal Bank of Australia (RBA) cutting interest rates and its outlook is driving this move. Image courtesy Stephen Gibson: http://www.photoxpress.com/search-stock-photos-photographer/Stephen+Gibson/326772

Commodities are the starting point and we have a seen a typical 3 month lag for the spot price and the impact on Australia.

The recent RBA statement tells you they don't see a recovery in this commodity sensitive economy anytime soon and need to keep rates and policy accommodative.

Historically the move in this currency would have been part in parcel with a full scale rout in global risk assets but like a handful of other measures we see of global risk appetite.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , International , Stocks

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