The Australian dollar is trading lower today after another tumble in commodity prices and amid growing expectations that The US Federal Reserve will raise interest rates in December.
At 8.15pm (GMT), the Aussie dollar was trading at US71.87c down from US72.36c at close of trade on Friday.
Iron ore, Australia’s biggest exported was headed for a new 10 year low over the weekend, dropping towards the $US40 mark as demand from China drops leaving the commodity without one of its biggest customers.
Another important commodity, copper, also fell to multi year lows, which handed another blow to the Australian economy as many feel it will lead to job losses.
Also weighing on the Australian dollar was the likelihood next month that the US Fed will lift interest rates, which have been sitting at 0.25 percent as the economy moves ahead, and inflation heads towards the US central bank’s target rate of 2 percent.
Adding fuel to the fire San Francisco Fed president John Williams noted over the weekend in a speech that the time to raise interest rates was strengthening and that December looks a likely time for “liftoff”
RBA governor Glenn Stevens will deliver a speech in Sydney tomorrow night where he is expected to give his outlook on the economy with commodity prices likely to be a hot topic.
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