The Australian dollar has dropped below US70¢ after Chinese industrial profits figures added to evidence that the Chinese economy is slowing.
At 7am, the local unit was trading at US69.89¢, down from US70.33¢ yesterday.
Analysts forecasted that it would fall to as low as US68¢ by December.
Profits from China’s industrial sector fell 8.8 per cent last month, weighed down by August’s currency devaluation, weak demand and plunging share prices.
BK Asset Management managing director Kathy Lien said the data was the reason commodity currencies such as the Australian dollar fell.
“Both the Australian and Canadian dollars fell sharply today as profits fell by the largest amount in four years,” she said.
“Earnings in the resource sector have been hit particularly hard and this put additional pressure on commodity prices.”
Ms Lien expected the Chinese economy to continue to weigh on the Australian dollar.
“There are major economic headwinds in China and this will limit growth in countries that rely on Chinese demand,” she said.
Local economic data out on today include the release of the ANZ-Roy Morgan weekly consumer confidence survey.