The Australian dollar fell from 0.7350 to 0.7300 (-50 pips) in the prior Asian session in reaction to the weaker than expected Chinese July manufacturing PMI which fell to a 15-month low of 48.2 versus the 49.4 reading of June.
There was a second round of bearish news for the aussie when the Standard & Poor's rating agency said that Australia's rating might be lowered if Australia's budget situation does not improve broadly. The rate fell further to dip to 0.7268 in the Asian session.
The aussie also traded in a weaker tone in Europe as the prices for iron ore and commodities traded lower. Iron ore exports fell almosst 50 percent in the past year in Australia.
Chart: WorldWideMarkets Alpha Trader