By a sizeable margin, the Australian dollar is the worst performing G10 currency on a one-day view. The AUD/USD pair has room to fall below the 0.72 level in the next weeks, in the view of Jane Foley, Senior FX Strategist at Rabobank.
A number of factors to weigh on the aussie
“A dovish central bank, a Treasurer who is mindful of the need of Australian companies to diversify from trade with China, the fall in iron ore prices on the back of Chinese steel production curbs and heavy COVID-19 related restrictions should keep investors wary.”
“In our view AUD/USD is at risk of another dip lower below 0.72 in the coming weeks. This assumes the USD can stay on the front foot.”