The Australian dollar has plummeted to fresh four year lows amid better than expected US jobs data and disappointing Chinese trade figures.
At 1700 AEDT on Monday, the local currency was trading at 82.90 US cents, down from 83.76 cents on Friday. The Australian dollar came under pressure on Friday night after official figures showed the US economy added 321,000 new jobs in November, the highest monthly number in almost three years. The local currency dropped even further on Monday, reaching 82.75 US cents, its lowest point since June 2010, after figures from China, Australia’s largest trade partner, showed a surprise fall in imports. The combination of strong US data lending support to the US dollar, and concerns about China’s economy, were weighing on the Australian dollar, Scutt Partners market strategist David Scutt said. “The market is still digesting the unbelievably strong payrolls data out of the US,” he said. “It’s got a lot of people talking about the possibility of the US Federal Reserve raising rates early next year. “The import side of the Chinese trade data disappointed – as a major exporter to China, that’s obviously not a great outcome for Australia.”