What goes up must come down. This is finally holding true for the resilient Australian dollar that has begun to show weakness against the greenback given the latter’s broad-based strength.
The Aussie dollar fell below the key $1 mark on Friday, its lowest level in almost a year, and stayed there in early Asian trade on Monday. It has shed about 2 percent of its value since last Thursday, taking its losses against the U.S. dollar so far this year to almost 4 percent.
Analysts say the strength in the greenback as the outlook for the U.S. economy improves and concerns about economic growth in China, Australia’s most important trading partner, explain the change of fortunes for the Australian dollar – one of the world’s best performing major currencies in recent years.