Australian dollar hits decade lows
Australia’s exporters of agricultural goods could be among the beneficiaries of a definite slump in the value of the Australian dollar. On Thursday, the AUD slipped to US67.49, the lowest value in over a decade, before recovering to US69.31 later in trade.
International investors, spooked by the poor end to the year on financial markets, have flocked to the safe haven investment of the US dollar, which has soared in the early part of 2019, spurred on by the US Federal Reserve hiking interest rates. The dollar did not fall by as much in comparison to other currencies such as the UK pound or the euro.
Much of the blame for the drop was apportioned to weaker economic data out of China, where the manufacturing sector contracted for the first time in over a year and a half. Analysts believe the US-China trade war is starting to impact the Asian giant.
According to queenslandcountrylife.com.au, Australia’s heavy reliance on China as a trade partner means bad financial news there has a big impact on domestic markets.
Publication date : 1/3/2019