The Australian dollar fell below 70 cents to its lowest level in 10 years.
After breaking 70 cents at night, the Australian dollar once fell to just 67.49 cents. It bounced back to about 68.71 cents at 10:00 on Thursday morning.
The Australian dollar fell nearly 1 percent after recent manufacturing data showed that the US-China trade war was hurting the Chinese economy.
The Caixin Manufacturing Purchasing managers Index (PMI) fell to 49.7 in December for the first time in 19 months.
At the same time, the dollar`s appreciation has pushed the Australian dollar lower relative to the weak EU economy, which has sent investors away from a safe U.S. currency paradise.
A strong currency was once Australia`s pride, but interest rates and commodity prices could push the Australian dollar down. In particular, the euro zone`s manufacturing PMI fell to a two-year low of 51.8. 1%.
Meanwhile, commodity prices in Australia fell, with copper down 2.1 percent and aluminium 2.7 percent.
Analysts say the new dormitories point to a slowdown in the global economy.
The Australian dollar stood at 69.9 cents at 7 a.m. on Thursday morning.
The Australian dollar has fallen almost 14% since January 2018, compared with 81.09 cents a year ago.
The Fed raised interest rates four times a year (interest rates rose 1 per cent), while Australia, traditionally higher than the United States, kept its lowest interest rate on record.
The dollar`s high interest rates make it a more attractive investment than the Australian dollar.
