Australian Dollar Extends Decline Amid RBA Stevens' Comments

The Australian dollar continued its early decline against its major rivals in New York deals on Monday, after the Reserve Bank of Australia Governor Glenn Stevens remarked that the bank would prefer accommodative policy and further reduction of interest rates is also on the cards.

In a speech to the American Australian Association, Stevens said the Board had clearly signalled its willingness to lower rates even further, should that be helpful in securing sustainable economic growth. "The Board has been proceeding with a degree of caution that is appropriate in the circumstances," he added.

He also reiterated that the domestic currency had declined and would fall further, in due course.

The aussie hit 4-day lows of 0.7717 against the greenback, 1.3923 against the euro and 92.08 against the yen, down from early highs of 0.7825, 1.3778 and 93.00, respectively.

The aussie slipped to 1.0078 against the NZ dollar, its lowest since April 15.

The aussie dropped to 0.9434 against the loonie, after having advanced to a 4-day high of 0.9549 at 6:45 pm ET.

The aussie may possibly find downside target around 0.75 against the greenback, 1.40 against the euro, 90.00 against the yen, 1.006 against the kiwi and 0.934 against the loonie.