The Australian Dollar Is Getting Smoked

Photo: Joel Ford / Getty Images.

The Australian dollar hit a five-and-a-half year low earlier today, briefly trading at US80.52 cents.

Down from US81.37 cents on Friday, the dip is the lowest the Aussie dollar has traded since July 2009.

Driving the dollar down are weaker commodity prices, including iron ore, and the US dollar’s growing momentum as its economy recovers. Many in the market expect both factors to continue throughout 2015 especially as the affects of a China slowdown ripple through to the Australian economy.

In December Reserve Bank governor Glenn Stevens said he wants the Australian dollar to fall to US75 cents. A year before he said fair value for the currency was around 85 cents.

The Aussie has since jumped slightly to trade at 80.64 a short time ago.

Here’s the chart for today.

This one shows AUD/USD since March 2009.

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