The Australian dollar weakened against major currencies as commodity prices fell. A broad decline in prices for key Australian exports, including iron ore and coal, put downward pressure on the currency. Concerns about the pace of global economic recovery also weighed on the Aussie.

Analysts noted that weaker-than-expected economic data from China, a major consumer of Australian commodities, added to the negative sentiment. The Australian dollar’s performance is often closely correlated with commodity prices, making it vulnerable to fluctuations in global demand and supply.

Currency traders are now focusing on upcoming Australian economic data releases, including employment figures and inflation data, for clues about the Reserve Bank of Australia’s (RBA) future monetary policy decisions. Any signs of a slowing Australian economy could further pressure the currency.

Here are some factors influencing the Australian dollar:

• Commodity price movements
• Global economic growth prospects
• Chinese economic data
• RBA monetary policy

The Australian dollar’s near-term outlook remains uncertain, with its performance likely to be dictated by commodity prices and global economic developments.