Aussie dollar falls to fresh 6-1/2-yr low, set for another sorry week

The Australian dollar fell as far as 69.60 US cents, its lowest since 2009, after key support of 69.80 US cents finally gave way.
The Australian dollar fell as far as 69.60 US cents, its lowest since 2009, after key support of 69.80 US cents finally gave way.PHOTO: BLOOMBERG

SYDNEY (REUTERS) - The Australian dollar plumbed a fresh 6-1/2-year low on Friday (Sept 4) as renewed worries about global growth encouraged more selling by investors who were already deeply bearish, in turn dragging the New Zealand dollar lower.

The Australian dollar fell as far as 69.60 US cents, its lowest since 2009, after key support of 69.80 US cents finally gave way. It was last at 69.75 US cents. The Aussie dollar has slipped 2.8 per cent against the greenback since Monday and if sustained, it would be the second largest weekly loss this year.

Against the Singapore currency, the Aussie unit was trading at 1.0115 to one Singdollar, after hitting a new low of 1.0132 earlier Friday. It closed at 1.0075 on Thursday.

The Aussie was hit on all fronts, even losing ground against a depressed euro. The common currency took a broad hit overnight after the European Central Bank suggested it may have to expand its already massive stimulus program.

The Australian currency also dropped to a two-year trough of 92.19 Canadian cents, while it was down 4.5 per cent against the safe-haven yen for the week.

Investors have been aggressive sellers of the Aussie in recent weeks, in large part due to heightened concerns about a hard landing for the Chinese economy. China is Australia's top export market.

Focus is on US nonfarm payrolls due later on Friday and a solid payrolls outcome would bolster the case for an interest rate hike by the Federal Reserve this month. Conversely a weak number would cloud the view for a September lift off.

"Failing a completely disastrous U.S. employment print, we could easily test 69 US cents as regional woes (China) compound," said Stephen Innes, a senior trader at FX/CFD firm OANDA Australia and Asia Pacific.

The New Zealand dollar fell in sympathy with the Aussie to 63.65 IS cents.