News - The Australian dollar on the brink

  • Oct 03, 2018 AEST
  • Team Kalkine
News - The Australian dollar on the brink

Against the greenback, the Aussie has shed 7.9 percent so far this year. The RBA’s recent decision to hold the cash rate at 1.5 per cent has blurred the currency’s outlook. The AUD dropped to as low as US 71.62c overnight, and as a proxy to China’s economic prospects, it is increasingly trading. Among the major currencies it was not just Aussie alone in taking a step back overnight as the Euro also retreated.

The AUD would not be out of the woods in terms of risk of returning to retest post-2014 cycle lows below US70¢ unless the pressure on emerging markets, not just from rising US rates but also the likely mounting up of US tariff actions on China and potentially higher USD/EM Asia FX is out of woods. For other industrial commodities also, the firm saw declines ahead.

Two negatives for the EM currencies are that investors are anticipating slower fed interest rate raise in the next few quarters, but the Fed will raise rates a bit more quickly and expect that China's economy will lose more momentum as quoted by Mr. Jones. As the US economy will slow down sharply, the expectations are that the Fed will stop hiking interest rates in mid-2019, which may probably bring in demand for risky assets and in such circumstances EM currencies typically fall. 

Australia's trade performance, the government budget position and mining sector profits are supported by the decline in Australian dollar so far this year. The weaker Asian currencies have dragged down the AUD particularly the CNY while acting as a proxy of risk for China.

The PMI data for September manufacturing suggest that growth is slowing as the US trade policy has put intense pressure on China. The monetary and fiscal policy will be eased by Chinese policymakers to underpin the growth as predicted by market commentators, to address excesses in debt markets the scope for action is limited by government policy. Sterling on the other hand slipped to a three-week low as a conflict over Theresa May’s (UK Prime Minister) Brexit plan escalated.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.



All pictures are copyright to their respective owner(s) does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK