2014.02.2606:38:11UTC+00Aussie glides down with iron ore

The Australian dollar dropped versus its major counterparts as iron ore prices reached a seven-month low. A gauge of trader anticipations of future currency swings sank to the lowest in more than a year prior to US Federal Reserve Chair Janet Yellen's testimony tomorrow. Investors are looking for the central bank’s perspective about the economic impact of winter weather.

Australian dollar plunged 0.2% to 90.06 U.S. cents as of 2:44 p.m. in Tokyo, after sinking as much as 0.6% to 89.69. The yen was slightly changed at ¥102.28 per dollar and ¥140.55 per euro. Europe’s 18-nation currency was somewhat changed at $1.3741.

Iron ore prices for Chinese imports slid for a fifth day to $119.10 per metric ton yesterday, the lowest since July 1, based on the data from The Steel Index Ltd. Australia’s statistics bureau noted construction work done in the nation in the 4th quarter hovered 1%, as compared to the economists' forecasts of 0.2% gain.