Canberra: The Australian dollar has touched a fresh 5.5 year low in trade as the US dollar continues to rally and fears of a slowdown in China this year weighed on the currency.
The US Federal Reserve is widely expected to lift Interest rates this year with some analysts predicting that the first move will come in April which is much sooner than most predicted last year.
“The Australian dollar will come under further pressure as we move towards the first expected rate increase in the US” noted analysts from Fibogroup.
“The market is already starting to price in a rate hike which will keep a cloud hanging over the Aussie currency”.
“On top of that there is the potential for an Interest rate cut in Australia sometime this year which only adds fuel to the fire”.
Easy Forex currency dealer Ricky Liu said weak commodity prices and the overall strength of the US economy were likely to pressure the Australian dollar in 2015.
“US dollar strength has continued in anticipation of an interest rate hike by the US Federal Reserve, so we’re getting a weaker Australian dollar,” Mr Liu said.
“Commodity prices have continued to fall off and China is slowing down which also affects the Australian economy”.
