The Australian dollar cracked below the key psychological level of $0.70 for the first time in over six years on Wednesday as investors shunned the currency amid concerns around China's darkening economic outlook, the rout in commodities and sluggish domestic growth.
The currency fell as much as 0.4 percent against the U.S. dollar in early Asian trade to hit $0.6968, its weakest level since April 2009, before settling above $0.70.
"The Aussie's being singled out for punishment due to its heavy trade reliance on China," said Sean Callow, senior currency strategist at Westpac. "It's reflecting a gloomier outlook for China and commodity prices."
These concerns were compounded by Australia's weaker-than-expected gross domestic product (GDP) report that was released on Wednesday. The economy expanded a seasonally adjusted 2.0 percent on year in the April-June quarter missing expectations for growth of 2.2 percent.