70c in sight as Aussie hits 10-month low

AUD/USD dived 0.3% to an almost 10-month low of 0.7126.

Chart support from former resistance-turned-support lies at 0.7000.

AUD/USD fell 1.2% on Thursday and was down 3.4% for the week.

But despite Australia’s rising Covid case numbers and extending lockdowns, AUD/USD is only the third-worst performing G10 currency today.

NAB’s head of FX strategy, Ray Attrill says it has suffered from reassessment of expectations of when the global economy can spring back into a ‘living with covid’ situation, the related tumble in commodity prices and the broad-based demand for the ‘safe haven’ US dollar and to a lesser extent Yen and Swiss Franc.

“It probably means there is more pain ahead for the Australian dollar and other commodity currencies,” Mr Atrill.

“It’s always darkest before the dawn, and dawn has evidently been delayed by a few months at least.”

But commodities are finding some support.

Iron ore futures rose 6.9% after falling 12.4% to an 8-month low of $US130.20 on Thursday.

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