Australian Dollar Drops Below 60 US Cents
The Australian dollar (AUD) has suffered its biggest one-day drop in 17 years, slipping below 60 US cents. Investors are panicking over US tariffs, leading to a sharp sell-off in global markets.
The AUD is now trading at $0.6013 against the US dollar (AUD/USD), after briefly hitting a low of $0.5933 earlier today. The drop has left holidaymakers and importers facing higher costs.
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The AUD is now trading at $0.6013 against the US dollar (AUD/USD), after briefly hitting a low of $0.5933 earlier today
Why Is the Aussie Dollar Falling?
The Australian dollar has been weakening all year, fluctuating around 63 to 64 US cents. However, Trump’s new tariffs triggered a fresh wave of market panic.
Currency analyst Sean Carrow says the AUD initially held firm despite the tariff news. “The puzzle was how the Aussie dollar stayed strong after Trump’s tariffs,” he said.
But the AUD could not hold out for long. On Friday, the currency saw its worst single-day fall since the Global Financial Crisis (GFC) in 2008.
Trump’s Tariffs Spark Global Fear
Donald Trump’s aggressive trade measures have shaken markets worldwide. The latest tariffs have raised concerns about slowing global growth, putting pressure on the AUD.
China, Australia’s biggest trading partner, is retaliating against the US tariffs. The news sent shockwaves through the currency markets, hitting the Aussie dollar hard.
“The AUD is highly attuned to global risk sentiment,” said ANZ analyst Felix Ryan. “When risk rises, the AUD weakens.”
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AUD Underperforms Against Major Currencies
The Australian dollar is struggling against several major currencies:
- US Dollar (AUD/USD): $0.6013 (-8.53% in one year)
- Euro (AUD/EUR): €0.5476 (-9.77% in one year)
- British Pound (AUD/GBP): £0.4663 (-10.45% in one year)
- Japanese Yen (AUD/JPY): ¥87.742 (-12.01% in one year)
The AUD is also falling against the Swiss franc, Canadian dollar, and New Zealand dollar.
Bad News for Travellers, Good News for Exporters
The falling AUD means Australians will pay more for overseas travel, imported goods, and online shopping. Europe and the US will become expensive destinations for Aussie tourists.
On the other hand, exporters stand to benefit. A weaker AUD makes Australian goods and services cheaper for international buyers, boosting demand.
Will the Aussie Dollar Fall Further?
The Australian dollar last traded below 60 US cents during the COVID-19 crash in 2020. Before that, it stayed under 60 US cents from 2000 to 2003.
Sean Carrow warns that the AUD could stay weak for some time. “It’s very weak against the USD and European currencies,” he said. “A terrible time to travel to Europe.”
However, the currency could recover if global markets stabilise. “If there’s a glimmer of optimism, we may see the AUD regain some ground,” Carrow added.
For now, Australians will be watching the AUD closely as market uncertainty continues.
