AUD back at 90 cents US.
The AUD has dropped nearly 4 US cents in the past 10 days to 6 month lows falling to just above 90 US cents predominantly on the back of a strengthening USD with recent US housing & labour figures indicating a healthier US economy and economic outlook, as well as softer Chinese data and iron ore prices.
The AUD also weakened over the weekend on news that Chinese industrial production slowed to its lowest level since the GFC coming in at 6.9% yoy well below market expectations of 8.8% yoy.
The USD (Greenback) has strengthened against most currencies in the past few trading sessions on the expectation the US Fed Reserve will start to tighten monetary policy and raise interest rates sooner than initially expected.
For more details see attached article – AUD article 160914
Sources – ABARES & CBA.