Australian dollar drops to five-month low

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Australian dollar drops to five-month low

Updated

The Australian dollar has continued its recent slump, hitting a five-month low against its US counterpart over the weekend.

After briefly hitting US81c in September, the local dollar has been retreating steadily, and slipped as a low as 75.36 US cents in the offshore session. At 10am, it has recovered some ground to be fetching around 75.61 US cents.

Westpac's Imre Speizer on Monday said the US dollar had fallen as risk appetite again softened - but so did the Australian dollar.

"Risk appetite softened again (S&P500 -0.3 per cent) amid subpoenas on (US president Donald) Trump's campaign," he said in a morning note.

 The Australian dollar hit a five-month low in the offshore session.

The Australian dollar hit a five-month low in the offshore session.

"The US dollar and US interest rates fell, but so did the AUD and NZD.

"The US dollar index closed down 0.3 per cent on the day... (the) AUD fell from 0.7607 to 0.7536 - a five-month low."

The outlook for the local currency did not look very rosy, he said.

"Momentum remains negative, vulnerable to a break below 0.7535 (with) minor support if risk sentiment remains downbeat."

The Aussie dollar is down against the yen but higher against the euro.

Wires

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