Australian dollar slides to fresh 2-year low
Make us a preferred source
Make us a preferred source on Google
The news: The Australian dollar tumbled to its lowest level against the US dollar in more than two years as the greenback continued to advance on concerns over tariffs under the incoming Trump administration.
The numbers: The local currency is currently trading at 61.97 US cents but overnight slipped to a low of 61.72 cents before recovering. That was the lowest level since it touched 61.56 US cents in October 2022.
The context: The Australian currency has dived as the US dollar has extended its gains against a basket of world currencies. The dollar index, which measures the greenback against a basket of currencies, rose 0.15% to 109.18.
Recent economic data has shown a US labour market on a solid footing and minutes from the Federal Reserve's December meeting showed that policymakers raised new inflation concerns suggesting the Trump administration's plans may slow economic growth and increase unemployment.
Meanwhile, the Aussie continues to be weak after retail sales data for November came in slightly below market expectations, boosting dovish bets the Reserve Bank could cut rates in coming months, while weaker-than-expected Chinese inflation figures also weighed.
Later today, the Australian household spending indicator figures will be released while the latest US unemployment rate will be published overnight.
The source: Reuters
