The Australian dollar has hit fresh three-and-a-half-year lows amid concerns over China’s shadow banking sector and growing strength in the US economy.
At 0700 AEDT on Monday, the Australian dollar was trading at 87.78 US cents, down from 88.15 cents on Friday.
The Australian dollar has been on a downward slope since weaker-than-expected jobs data on Thursday, ANZ senior manager FX in Auckland Sam Tuck says.
The currency had weakened further amid concerns over a troubled Chinese trust product and signs that the US economy is doing well, he added.
“The Industrial and Commercial Bank of China are saying they won’t bail out this trust product which may or may not default on January 31,” Mr Tuck said.
“That plays to long-standing concerns about the Chinese shadow banking sector.
“With the US data on Friday coming pretty much in line with market expectations and the market writing off the weak non-farm payrolls as an aberration, the Chinese trust product was another thing to talk about.”
Mr Tuck said the market on Monday would turn its focus to Chinese fourth-quarter gross domestic product data.
AAP