The Australian dollar has fallen to its lowest level since Christmas, as metals prices fall on the back of worries about a possible international trade war.

At 0635 AEDT on Monday, the local currency was worth 77.19 US cents, down from 77.93 US cents on Friday.

Early on Saturday morning, Australian time, the Australian dollar fell as low as 77.10 US cents, after copper prices hit a one-week low as the US dollar recovered and concerns lingered that US tariffs could provoke a trade war.

BK Asset Management, managing director of FX Strategy Kathy Lien said lower commodity prices, risk aversion and a general demand for US dollars caused the Australian dollar to break the bottom of a three day range and close in on a three month low.

AAP

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