The Aussie dollar traded to a high of 0.8026 on Wednesday night but this morning is down almost 3 cents at 0.7740. It traded a low of 0.7717 early this morning.
That’s the lowest level the Aussie has traded against the US dollar since July 2009.
The move over the past 36 hours is a reminder that the old axiom that the Aussie goes up the stairs and down the elevator still holds true.
But while the Aussie’s move had its genesis in a recalibration of RBA rate cut expectations, Richard Franulovich, Westpac’s senior currency strategist in New York, told Business Insider that the Aussie was under pressure from generalised US dollar selling.
He said there was a lot of macro funds selling Aussie after “watching the RBA and the tumble in gold and oil in the NY session”.