The Australian dollar is trading at the highest level since June 2013, after pushing through 96 US cents. The US dollar has been depreciating against the Australian dollar due to the last-minute budget bill which staved off a default and re-opened the federal government. This fall was hastened by reports that Chinese ratings agency Dagong downgraded US debt from A to A-. BK Asset Management managing director Boris Schlossberg said The move was no doubt self-serving and part of a broader Chinese campaign to 'de-Americanise' global trade as China attempts to ascend to reserve currency status, but the move nevertheless provided the fuel for further US dollar liquidation. Schlossberg also mentioned that this would delay the tapering plans of the US Federal Reserve, given the uncertain long-term effects of the government shutdown and possible weak economic data which would also keep the US dollar under pressure. (VIEW LINK)
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