The Australian dollar is still getting smoked

JUSTIN TALLIS / AFP / Getty Images
  • The Australian dollar continued to slide on Friday, continuing the selloff that began on Thursday.
  • The AUD/USD has lost over 2% during the past two sessions, the largest percentage decline since Brexit.
  • It has now lost over 5% since late January.

The Australian dollar was smoked again on Friday, falling heavily against all of the major crosses, mirroring its performance from a day earlier.

Here’s the closing scoreboard.

AUD/USD 0.7715 , -0.0083 , -1.06%
AUD/JPY 81.76 , -1.15 , -1.39%
AUD/CNH 4.8785 , -0.0566 , -1.14%
AUD/EUR 0.6275 , -0.0062 , -0.98%
AUD/GBP 0.5532 , -0.0060 , -1.11%
AUD/NZD 1.0686 , -0.0026 , -0.24%
AUD/CAD 1.0178 , -0.0078 , -0.77%

Having broken its March uptrend a day earlier, the AUD/USD was hammered lower once again, undermined by a combination of technical selling, tweaks to positioning ahead of next weeks US Fed meeting, strong US economic data and ongoing political and trade policy uncertainty.

After sitting in the red for most of the Asian session, the selling really kicked off during European trade following a failure to break back above its 200-day moving average.

From there it was one-way traffic for the Aussie, losing over 1% against the US dollar for a second consecutive session.

Combined with Thursday’s losses, the two-day percentage decline was the largest since the immediate aftermath of the UK Brexit vote, extending its slide from late January to over 5%.

As seen in the daily chart below, the AUD/USD found support at the lows it previous hit in early March. It’s weekly close was the lowest since mid-December.

AUD/USD Daily Chart