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Hardy: Expect the Aussie to fall further
The Aussie dollar's fallen to its lowest level since August 2010. Saxo's John Hardy it could fall further still before reaching a new short term equilibrium and then we might see it move down to .8500. It follows grim unemployment figures and there are more expectations that rate cuts are in the offing. The Aussie's also fallen to levels not seen since 2005 against its New Zealand counterpart. Weakening demand from China's been impacting on the Australian economy which relies heavily on Asian markets.
The British pound has been under pressure too, despite a string of good economic data from the UK. John says this is a "consumption driven recovery" and Britain still has an "ugly" current account deficit which is concentrating traders' minds. There are concerns about how Britain will fund these imbalances.
01:23 minutes
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