The Australian dollar hit a six-year low before a report forecast to show slowing domestic economic growth amid signs of a slump in China.

The currency fell as low as 70.13 U.S. cents and looks poised to break below 70 cents for the first time since April 2009. It has dropped 4 percent over the past month, the biggest loss among Group-of-10 currencies, as stocks slid.

The currency fetched 70.18 U.S. cents as of 8:03 a.m. in Tokyo from 70.19 in New York on Tuesday. It rose 0.2 percent to 83.93 yen.

China’s official Purchasing Managers’ Index dropped to 49.7 for August, the weakest in three years, a report showed Tuesday. Numbers below 50 indicate contraction.

The Australian economy probably expanded 0.4 percent in the three months ended June 30 from the first quarter, when it grew 0.9 percent, a report Wednesday is forecast to show, according to economists in a Bloomberg survey.

Reserve Bank of Australia Governor Glenn Stevens and his board kept the cash rate at a record-low 2 percent on Tuesday, as predicted by markets and economists following reductions in May and February.

Source : Bloomberg