AUD/USD registered significant declines on Tuesday towards 0.6615. Slowdown in Chinese economic activity is contributing to the decline in commodity prices. Stubbornly high inflation continues to prompt the RBA to delay rate cuts. In Tuesday's trading session, the Australian Dollar suffered further losses against the USD, with AUD/USD falling to 0.6615.
Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets or seeking safe-havens – is also a factor, with risk-on positive for AUD.