Since the US presidential election on Nov 8 in which Donald Trump was victorious, the Aussie has lost 3.5 per cent as the greenback jumped in line with yields on Treasury bonds.
The Aussie is down 1.5 per cent so far this month, set to post its second straight monthly loss. Over the past week, however, it has held its own against the US dollar aided by a sharp rebound in the price of iron ore and coal – Australia’s two largest exports.
“The Aussie dollar is looking like a beautiful oasis over the short term,” said Stephen Innes, senior currency trader at Oanda Australia and Asia Pacific.
“Speculative Chinese monies remain the primary driver in base metals flows as the China retail crowd stockpile everything in sight ahead of the anticipated Trump fiscal boom.”
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