Negative start of the Aussie in 2014

Negative start of the Aussie in 2014 

The Australian dollar plunged to its lowest levels in nearly three and a half years (since August 2010) hitting a low of $0.8776.

The  drop  of the Aussie come  on worse-than-expected employment data in December reported by the  Australian Bureau of statistics , making it the worst performing Group-of-10 currency in the last year.
The Jobs data raised concerns of a slowdown in Australian economic growth, which could in turn encourage the RBA to further cut rates.
Meanwhile, the World Bank’s downgrade of China for 2014-2015 growth outlooks on Wednesday would add further pain to the Australian dollar’s fundamental outlook since China is Australia’s top export market and an economic downgrade of China will hurt Australia potential growth.

Furthermore, many analysts assume that If the U.S Federal Reserve Bank continues to cut its asset purchases this year on improving US economy and encouraging US data, it will boost the U.S. dollar and therefore weaken the Aussie.

2014 outlook for the Aussie may look very similar to the Euro’s future.

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