AUD/USD Drops to 1.0230 Ahead of Trade Data

Australia’s dollar slid against most major peers before a report that may show the nation’s trade deficit widened.

The so-called Aussie remained lower after the biggest drop in a week against its U.S. counterpart amid speculation the European Central Bank will downgrade its economic outlook at a meeting today, reducing demand for higher-yielding assets. New Zealand’s currency, known as the kiwi, slid for a second day versus the greenback after a gauge of raw materials declined.

“The Aussie is still under pressure,” said Derek Mumford, a Sydney-based director at Rochford Capital, a currency risk- management company. “The Australian economy is still very much dependent on mining and capital spending, which looks like it’s peaking.”

Bloomberg

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