Has the Aussie dollar bottomed?

by Chris Becker

No doubt, markets have been oversold in the past few weeks as the fallout from the Chinese equity collapse continues. Not only stocks but currencies as markets weigh up the potential for the first rate rise in nearly 10 years from the Federal Reserve next week. Combined, this has pushed the Australian dollar down to new lows, recently trading at 69 cents against the USD.

But iron ore has rallied some 30% off its own low and so far has yet to drag up the Pacific Peso with it. In the last few days we’ve seen a small rally from the Aussie, lifting nearly 2 cents exactly from the 69 cent low and as of this morning, trading at 70.75cents.