Australian dollar extends its losses and record the lowest level in two months

The Australian dollar fell during trades on Friday, recording the lowest level in two months against the US dollar after quarterly report releassed by the Reserve Bank of Australia showed low expectations for core inflation during the current year.

Australian dollar versus the US dollar is currently trading at 0.7410 level after it recorded the lowest level in two months at 0.7402 while today's session was opened at the level of 0.7473, recording its highest level at 0.7473.

The current decline in the Australian dollar levels comes after the Reserve Bank of Australia announced that it reduced inflation expectations this year to 1-2% from 2-3% which reflects the growing Australian central bank's chances of reducing interest rates.

The Australian dollar fell to its lowest level in two months, after the Reserve Bank of Australia cut interest rates during the last meeting to 1.75% from 2% which opened the door to the Australian dollar decline.

On the other hand, we find that the recovery of the US dollar against major currencies worked to increase the negative pressure on the Australian dollar to widen its losses against the dollar in light of the negative correction that accompanied currencies and commodities since the beginning of this week after the dollar fell against major currencies.