Australian dollar sinks below 70 cents on RBA hike fallout

The Australian dollar has fallen below 70 US cents, extending its slide to a fourth consecutive weekly decline.
The currency is under pressure from a strong US dollar and weak commodity prices. It has lost ground steadily since the Reserve Bank of Australia raised rates.
The RBA lifted its cash rate to 4.6 percent in September, a 15-year high, as it fought stubborn inflation. Higher rates normally support a currency, but traders are betting the tightening cycle will hurt growth.
China's uneven recovery has weighed on iron ore prices, a key Australian export. Weaker terms of trade have compounded the currency's fall.
Analysts say the Aussie could stay under pressure while the US dollar remains strong. Some see scope for a rebound if commodity prices stabilise.
The weak currency raises import costs for Australian households already squeezed by rising prices.
The Aussie last traded below 70 US cents during bouts of global risk aversion earlier this year. Currency strategists say much depends on whether China's demand for iron ore recovers.
Sources: tradingeconomics.com, tradingview.com, fxstreet.com.
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