Aussie bears the weight of global risk aversion

MARKET NEWS

The Australian dollar was hit by a sharp decline last week, says Karen Pringle (pictured), senior currency strategist at ANZ Investment Bank in London

In the past month, the Australian dollar has been one of the worst performing major currencies. In that time, it has retraced 50% of its gains from the US$0.5050 January low to a June peak of $0.5796, and is down 8% on a Trade Weighted Index (TWI) basis.

The Aussie’s decline accelerated last week as risk aversion rose sharply on the back of US/g