The Australian dollar has been falling this year. On August 6th, the Reserve Bank of Australia decided to cut the benchmark interest rate by 25 basis points to a historical low of 2.5%. This is the eighth time that the bank has cut interest rates since 20111,trying to alleviate the impact of China's weakening demand for its commodities. China's economy is the main driving force behind the rise of the Australian dollar in the past 10 years. From 200 1 to 20 1 1, China's economy grew at a double-digit annual growth rate of 10.4%. China's huge demand for commodities triggered a bull market in the Australian dollar, and Australia became China's largest exporter of iron ore and coal. However, with the significant economic slowdown in China, especially the transition from investment-led growth mode to consumption-led growth mode, it means that China's demand for Australian iron ore and coal will decrease. Australian dollar falls, pay attention to market news.

Source: Global Foreign Exchange Network