The Australian dollar was almost half a US cent lower after investors sold off the currency on Friday night in response to Chinese inflation figures.
At 6.30am AEDT the Australian dollar was trading at 105.39 US cents, down from 105.82 US cents on Friday.
BK Asset Management director Kathy Lien said the currency weakened as traders in Europe and the US reacted to the release of Friday's Chinese inflation figures.
“he Australian dollar was hit hard by higher inflationary pressures in China - a colder than anticipated winter drove food prices higher and that means the (People's Bank of China) will be less inclined to ease monetary policy, which investors have interpreted to be negative for Australia,'' she said.
Source:
http://www.theaustralian.com.au/business/markets/australian-dollar-hit-as-china-cpi-rise-cuts-chance-of-policy-easing/story-e6frg94o-1226553235589
