See the latest Australian dollar analysis here:
The Aussie dollar is free fallin’ this morning, taking out lows not seen (for more than a few seconds) in three years:
Remarkably, the key driver of value, the terms of trade, is higher now than at any time since the 2016 lows:
But the other key driver of value, the yield spread, is at 40 year lows versus US yields, deterring capital inflow and prompting outflow:
It is the Aussie dollar tug-of-war on the century and while the trade war adds negative sentiment, the negative yield spread wins.