The Australian dollar has taken a beating since Donald Trump was elected as the next president of the United States, leaving traders puzzling over the currency’s next move.
The local currency has dropped 5.9 per cent since hitting a November high of US77.77¢ on November 8. On Friday it sank through US74¢ and at lunchtime on Monday was languishing at US73.19¢.
It has been “significantly tarnished,” said Stephen Innes, senior currency trader at FX and CFD broker OANDA Australia and Asia Pacific.
“And with US inflation expectations mounting on the proposed bombastic fiscal spend, traders are quickly repricing a steeper US Fed rate hike tangent,” he added.
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