$A drops on RBA rate cut comments The Australian dollar has fallen to fresh lows after the Reserve Bank said it could cut rates further, and amid concerns over slowing growth in China. At 1700 AEDT on Wednesday the local currency was trading at 85.41 US cents, down from 86.02 US cents on Tuesday. The Australian dollar fell to a fresh four year low of 85.15 US cents after RBA deputy governor Philip Lowe said the central bank could cut rates again if need be. He said the RBA was "in a fortunate position that if we do need to lower interest rates we can." Western Union Business Solutions currency strategist Steven Dooley said concerns about Chinese growth were also weighing on the Australian dollar, putting pressure on commodity prices. "Philip Lowe's comments were the trigger last night but the major driver has been the poor reaction on commodity markets to the People's Bank of China interest rate cut," Mr Dooley said. It looks like China has hit the panic button and it really has spooked the horses. The fact that we've seen such a cooling in iron ore, copper, crude oil prices, the big three commodities whose prices have been driven by the Chinese story, suggests the Chinese economy is slowing at a much quicker pace than previously thought. At 1700 AEDT, the Australian dollar was buying 100.59 Japanese yen, down from Tuesday's close of 101.40 yen, and 68.47 euro cents, down from 69.24 euro cents. Meanwhile, the RBA comments sent Australian bond futures prices surging, Westpac senior market strategist Damien McColough said.