After the twin disappointments of falls in both the ANZ weekly consumer confidence and NAB business confidence today the Aussie dollar was already under pressure in trade, dipping back below 77 cents earlier.
But a rampant US dollar has knocked it, along with the Euro, Sterling, Kiwi and Loonie – all lower in Asian trade.
But the Aussie, with a loss of 0.68% so far, is the worst performing major currency. That has seen the Aussie at its lowest level since the January rout with a low of 0.7631. That’s just 5 points above the lowest level seen since May 2009.
Already this week the NAB has highlighted that the risk to the Aussie heading to 73 cents is growing and seems that as the market starts to contemplate the Fed meeting next week the buying of US dollars could continue.
The RBA will be pleased.
The Aussie is finally starting to break down under the weight of the move toward rate hikes by the FOMC.