The news weighed the Australian dollar down to an intra-day low of US92. 39c, its lowest level since late May. "While sentiment was already fragile, today's news about the airstrike authorisation in Iraq has further sapped investor confidence," FXCM market analyst David de Ferranti said. "If we see tensions surrounding the Middle East or Ukraine escalate, the Australian dollar could face further pressure in the short term. "However, we have witnessed several flare-ups of geopolitical tensions in recent months, which have failed to leave a lasting impact on the currency. "This suggests that once the dust settles from today's panic sell-off, the currency may be afforded some breathing room.
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