The Aussie dollar has traded weaker as the weakness of the Chinese economy persists.
As commodity prices continue to decline further the Reserve Bank of Australia’s Index of commodity prices delivered its stark assessment of the falls. Over the past year the index has dropped by 23.3% which will of course hurt the Australian mining industry.
There were further sign of economic malaise. Australia’s building approvals report confirmed that the number of dwellings apporved during November fell by 1.9% and that this represented the 8th consecutive month of declines.
As the economy slows and concerns mount that China’s economy is slowing faster than had been previous forecast, there could be rising expectations for further Reserve Bank of Australia interest rate cuts to help bolster the domestic economic.
The Australian dollar was trading close to 0.70 against the US dollar and lost over 3 cents against sterling.