The Aussie dollar, fresh from a bounce off 2014 lows on Tuesday, crashed to 0.8561 overnight – its lowest level since July 2010.
What drove the move appears to have been a combination of a strong US dollar – USDJPY moved up to 114.65 – a weak AiG services index release yesterday, and a bearish report from Morgan Stanley downgrading the outlook for the economy, the ASX and reinforcing its view that the Aussie will end 2015 at 76 cents against the US dollar.
First support now is 84 cents, which is the bottom of the downtrend the Aussie has been in since the highs in 2011.
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