Tarnished Aussie Dollar

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.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes