The Australian dollar has fallen to a seven month low on the back weaker iron ore prices.

The local currency was trading at 72.09 US cents at 0710 AEDT on Friday, down from 72.45 US cents on Thursday.

Westpac senior market strategist Imre Speizer said while most currencies were steady overnight, the sharp 3.8 per cent fall in iron ore spot prices weighed on the Aussie.

“The Australian dollar was one of the few currencies to show any direction, falling from 72.50 US cents to 72 cents – a fresh seven-month low,” he said in a note.

“Momentum remains negative, the next target 71.45 cents (May low).”

AAP

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