Investing.com - The Australian dollar dropped against its U.S. counterpart on Tuesday, re-approaching a six-year low as global growth concerns continued to weigh on sentiment and as expectations for a U.S. rate hike in the coming months supported the greenback.
AUD/USD hit 0.6937 during late Asian trade, the pair's lowest since September 24; the pair subsequently consolidated at 0.6952, declining 0.54%.
The pair was likely to find support at 0.6893, the low of September 7 and a six-year low and resistance at 0.7035, Monday's high.
Market sentiment weakened after International Monetary Fund head Christine Lagarde said in an interview on Monday that the IMF is likely to revise downwards its estimates for global economic growth due to slower expansion in emerging economies.
Meanwhile, demand for the greenback remained supported after New York Federal Reserve Bank President William Dudley said on Monday that the Fed remains on track for a rate hike this year and could move as soon as the upcoming meeting in October.
The comments came after Fed Chair Janet Yellen said last Thursday that the U.S. central bank was likely to raise interest rates in 2015.
The U.S. dollar was als boosted by data on Monday showing that U.S. personal spending rose 0.4% in August, beating expectations for an increase of 0.3%.
The Aussie was lower against the euro, with EUR/AUD advancing 0.83% to 1.6220.