The Australian dollar dipped below the 90-cent handle this week for the first time since March, and some analysts say it could finally be on its way to 80 cents.
A confluence of weak Chinese industrial production figures, strong Australian jobs data and expectations for a U.S. interest rate hike in the near future has weighed on the Australian dollar, pushing it 4 percent lower against the greenback since September 5.
The Australian dollar’s strength has surprised investors. Despite ongoing economic headwinds including the end of Australia’s mining boom, slowing growth in its largest trading partner China, weak commodity prices and bruised consumer and business sentiment following the government’s harshest budget in two decades in May, it was stubbornly strong in the first half of the year.
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