Sydney Morning Herald 7/6/2013 – Derek Mumford

Dollar back on the roller-coaster

The Australian dollar has plunged back below 95 US cents, giving up most of its strong overnight gains in another day of volatile trading.

The currency hit the day’s low of 94.65 US cents shortly after midday, diving more than 1 cent in little over an hour. It’s since recovered slightly and was buying around 95 US cents in early afternoon trade.

The dollar rallied as high as 96.74 US cents overnight, rebounding strongly from a 20-month low of 94.35 US cents just after midnight.

Deutsche Bank currency strategist John Horner said the downward trend in the Australian dollar was still strong and this morning’s fall was a reflection of a “resumed softness in the Aussie once that position concluded”.

Rochford Capital director Derek Mumford said the volatility showed the different forces pulling on the market.

“The US dollar is being sold on everything apart from the Aussie dollar,” Mr Mumford said.

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