Jobs figures from the US prompted the Australian dollar and other currencies to fall this morning.
The Australian Financial Review reports that the Aussie fell below $US 69 cents early in the morning, hitting $US68.96 cents. The dollar had previously sunk to $US 69.7 cents on Friday.
The fall came after Friday night (Australian time) saw the release of US job figures. US unemployment was down to 5.1 per cent, reports AAP, though the adding of only 173,000 jobs in the month was “modest”.
“The eagerly awaited US payrolls report was strong enough to tip the scales towards a Fed rate hike later this month, and consequently dented risk appetite,” Westpac strategist Imre Speizer told AAP, pointing out that Australia’s currency was one of several that fell on the news.
The Australian dollar was trading at $US 80 cents at the beginning of the year. Some are predicting further declines against the US dollar.
The chief investment officer of Deltec, for example, suggested in July that the dollar could easily fall under 60 cents.