The Australian dollar fell to its lowest level since late July on Monday, breaching key psychological support at 70 cents after the second-quarter current account deficit showed only a modest improvement.
Political risk also dented the Aussie after Prime Minister John Howard called a federal election for October 9 at the weekend, compounding the currency's softer tone in the wake of a broad-based rally in the US dollar offshore on Friday.
The AUD was $0.6973/78 compared with $0.7059/64 late here on Friday.
The deficit remained close to a chunky A$12 billion ($8.4 billion) as the country's love for high levels of imports compared with its exports, which would normally demand a lower exchange rate, analysts said.
"The external accounts of Australia should be significantly better given the terms of trade are at a 28-year high, commodity prices are at a 15-year high, and the global economy is experiencing its strongest two year period for growth in two decades," said TD Securities chief strategist Stephen Koukoulas.
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