The Australian dollar was sinking toward its three-year low on Monday against the U.S. dollar as conjecture grew regarding whether the central bank of the U.S. will cut borrowing costs, Bloomberg reports.
Job market data released this week by Australia regarding last month also is likely to impact the performance of the Australian dollar. But the possibility is looming that the U.S. Federal Reserve might reduce interest rates in August.
"We think it should be valued about 10 percent below the current levels, around 80 to 85 cents, to put it more in line with fundamentals," regional chief investment officer Jose Blanco for Europe, Middle East and Africa at UBS Global Asset Management in Zurich told the news source during an interview late last month.
The Aussie is forecast to continue losing value, according to the Canadian Imperial Bank of Commerce, which has emerged as the currency's most accurate forecaster during the past year.
Losses for the Australian dollar on Monday against the world's reserve currency also are linked with strong U.S. jobs data, according to The Business Spectator.
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