By Tim Seymour
The Aussie dollar (FXA) slide continues, pushing through 1.00. It is looking to test June 2012 lows around .9612. Commodity weakness, along with the Royal Bank of Australia cutting interest rates and its current outlook, is driving this move.
Commodities are the starting point, and we have a seen a typical three-month lag for the spot price and the impact on Australia. The recent Royal Bank of Australia statement tells you it doesn't see a recovery in this commodity-sensitive economy anytime soon, and that it needs to keep rates and policy accommodative. Historically, the move in this currency would have been part and parcel of a full-scale rout in global risk assets, but like a handful of other measures we see of global risk appetite.