The AUD is and has gone down under in many ways. What is the culprit? China, US tapering, Commodity weakness. One may argue there is common ground to all three. And that is a generally negative sentiment for anything that is not American. The Taliban would likely not like this point but I speak economically on this.
Now Australia is about as Far East you can go (lets leave aside New Zealand for now) as the US is about as far west you can go. The furthest away get hit the hardest? Even the JPY is hit. This may be a coincidence but then again, investor psychology works in unknown ways and we will never quite know why certain things happen in the financial world. Enough to say that for now, yield differentials reign supreme and the Australian Bond market is in no rush to sell off. While the US rates market is generally selling like hot potatoes. And then contagion not only drives AUDUSD lower but also AUDNZD, AUDCAD, AUDGBP etc etc. More to go in these.
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