The Australian dollar fell to its lowest level in 18 months today (Monday, Aug. 13).
Turkey is likely to face the risk of a financial crisis, leading to a number of people choose to buy the Australian dollar safe haven. Experts say the Australian dollar still has a continuing downward trend.
The Australian dollar fell 1% over the weekend. Today, the Australian dollar continued to decline to A $1: 5.01 yuan (A $1: $0.73), the biggest drop since the beginning of 2017.
"the Australian dollar is a highly respected risk agent in the international market, and this sharp fall in the exchange rate is an indication of this," said Ray Attier (Ray Attrill), head of (National Australia Bank) 's foreign exchange department at Australia's National Bank of Australia. Attier pointed out that the Australian dollar fell sharply a year and a half ago, pulling the Australian dollar out of the market trading circle. Now that the exchange rate has fallen again, it is time to "ring the alarm" to take relevant measures.
The Australian dollar is expected to fall to $0.68 to $0.69.
While there will be "a long period of time" to resolve the financial crisis in Turkey and the sell-off of the Australian dollar, the Australian dollar itself is highly liquid, with businessmen using the Australian dollar in large quantities to make it through the period smoothly. In terms of foreign exchange markets, Australia is a heavily indebted country. As a result, Australia's own characteristics of the economy have increased its liquidity and increased the use of the Australian dollar.
"safe haven has never been a good thing for the Australian dollar," said Greg McCana, chief market strategist at AxiTrader, (Greg McKenna). "so this has been the focus of traders in the past few days, and the pressure on Turkey has increased. But the pressure on the Australian dollar is not surprising, as it has been and remains the world's favorite investment currency. As a result, when markets panic, the Australian dollar / US dollar usually does not perform very well. "