See the latest Australian dollar analysis here:
From the SMH:
The Australian dollar fell in evening trade on the back of rumours that billionaire US investor George Soros is planning to short the currency.
The Aussie dollar slipped from $US1.0284 in late local trade to $US1.0253 in offshore trade as traders reacted to unconfirmed rumours that Mr Soros – who famously shorted the British pound back in 1992 – was planning a raid on the dollar ahead of Tuesday’s interest rate announcement.
A large number trades shorting the dollar totalling $US1 billion were placed via Hong Kong and Singapore late Monday, believed to be by Soros Fund Management.
“Someone … seems to be betting on a rate cut,” said one Sydney-based FX trader. “I’ve heard the George Soros rumour tonight. A billion dollars sounds like a lot, but it’s not enough to move the Australian dollar and it’s not a lot for George Soros, but there is a play happening in the FX market.
Who knows? When the fall in the dollar comes it will be quick!