The Australian dollar has fallen to a one month low near 0.7020 after better than expected US job data to close out last week.
The 70 US cents has held up well for the Australian dollar over the last couple of months providing strong support, but it may come under renewed pressure as the Fed seemingly now has a green light to raise US rates as early as next month.
Australian employment data expected out this Thursday will now be closely monitored and if it disappoints, we could be soon seeing the A$ value with a ‘6’ in front again.
That simple move lower can have a significant impact on the way people think about the A$ – it places the Australian dollar into a new category, which can self-perpetuate and force the Australian lower again.
