The Australian dollar’s longest rally in more than six years faltered amid concern an economic slowdown in China will worsen.
The Aussie weakened against all 16 of its major peers before a report Tuesday that may show a further slump last month in imports into China, the South Pacific nation’s biggest trading partner. The currency had surged in the previous nine days as traders pushed back expectations for an interest-rate hike by the Federal Reserve and emerging markets recovered. Reserve Bank of Australia Deputy Governor Philip Lowe said Tuesday in Sydney that interest rates are less effective than they used to be.
Australia’s dollar declined 0.2 percent to 73.46 U.S. cents at 9:03 a.m. in Tokyo after appreciating by 5.4 percent in the previous nine days, the longest winning streak since March 2009.