The Aussie dollar has been hit for six, sliding to the lowest level since the UK 'Brexit' vote

Photo by Paul Kane/Getty Images

The Australian dollar remains under pressure, falling to the lowest level seen since June 24 in early Asian trade on Monday morning.

That was the day of the UK Brexit referendum result.

The AUD/USD buys .7324, extending its decline from the day before the US presidential election to 6%.

Here’s the current scoreboard as at 7.50am AEDT:

  • AUD/USD 0.7324 , -0.0008 , -0.11%
  • AUD/JPY 81.25 , 0.07 , 0.09%
  • AUD/CNH 5.0571 , -0.0005 , -0.01%
  • AUD/EUR 0.6905 , -0.0012 , -0.17%
  • AUD/GBP 0.5931 , 0.0009 , 0.15%
  • AUD/NZD 1.0470 , 0.0034 , 0.33%

Ray Attrill, global co-head of FX strategy at the NAB, suggests that a combination of higher US bond yields and falling commodity prices are working in tandem to undermine the Aussie dollar.

“The relentless rise in US yields was continuing to drive the US dollar upward, is starting to put downward pressure on most commodity prices and is also now unsettling the post-Trump victory global equity rally,” he said in a note released Monday morning.

US 10-year yields closed last week at 2.337%, according to Thomson Reuters, the highest level seen since November 9, 2015.

That helped the US dollar index surge to as high as 101.48 earlier today, a level not seen since early 2003.

As a commodity-linked, higher-yielding currency, it’s understandable why the Aussie is under pressure.

With next to no major economic data scheduled for release on Monday, it’s likely that movements in US treasury yields will continue to dictate direction in the US dollar index, hence movements across currency markets in general.

AUD/USD Daily chart

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