The Australian dollar extended its losing streak on Monday, falling to 6-1/2 month lows against a buoyant US currency, with softer commodities adding to its woes amid escalating worries about global economic growth.
The Aussie received a brief lift after the Reserve Bank of Australia (RBA) raised its short-term inflation outlook, while its quarterly statement on monetary policy contained little to suggest it would cut rates aggressively in September. The central bank said the scope for monetary easing was increasing, but it also reminded investors about the upside risks to inflation from Australia's booming terms of trade position. The Aussie dollar was at $0.8864/69 against the USD, down from $0.8953/58 here on Friday and off a low of $0.8835 which was its weakest since January 31.
The Aussie has shed more than 11 percent since striking a 25-year high of $0.9851 in mid-July, with the fall gathering pace last week after dovish statements from the RBA saw markets price in chances of a steep 50 basis point cut as early as next month.