The Australian dollar has come under further pressure today as the greenback continues to climb and expectations grow of a rate hike in December from the |US Federal Reserve.
At 4.13pm (GMT) the Aussie dollar was trading at US74.79c down from US75.60c in yesterday’s trading.
After remaining steady for the last few days, the Australian dollar has finally succumbed to pressure to break down through the US75c mark on the back of US dollar strength with some saying that the rout may not be over yet,
“The US dollar has had an impressive rise since the US election and has potential to rise further, not least because the Fed (Federal Reserve) will probably hike (its interest rate) in December,” noted Westpac strategist Imre Speizer
Key employment data out of Australia tomorrow is also likely to create volatility in the Australian dollar as well as shape some of the decisions made by the Reserve Bank of Australia as we enter the new year.
"We'll probably expect some movement tomorrow with the labour force data out. That might give a better idea of how much spare capacity there is and what that means for RBA decisions in 2017." Said Moody's Analytics Australia economist Emily Dabbs.