The Australian dollar, or Aussie, lost 3.5% against its US counterpart last week its worst weekly showing in over a year. Don't count on a rapid rebound.
In recent years, the economy has been propped up by Chinese demand for metals. But with China weakening, mining investment is dwindling, and it's hard to see what will replace it.
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Meanwhile, the consumer boom of the 2000s left households with high debts so most are now looking to pay down their borrowings despite low interest rates. Unemployment close to a 12-year high also militates against stronger consumption. It's still not clear "how the economy will cope with the end of its mining boom", says Capital Economics.
The upshot is that if there is any change in interest rates soon, it will be a cut. Bank of America Merrill Lynch expects the Aussie to be the weakest developed-market currency next year. Compared to the US dollar, which is benefiting from expected higher interest rates, the outlook is especially bearish.
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Millions at risk of 'unnecessary' tax bill – how to shield your savingsMillions of Brits could be taxed on their savings interest this year as their savings interest exceeds the personal savings allowance. Are you at risk?
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Savers will have to wait as long as 48 years to build a £1m cash ISA pot if allowance is cutChancellor Rachel Reeves is rumoured to be planning a cut to the cash ISA allowance in the Autumn Budget, making it harder for savers to build wealth. Will you still be able to build a £1 million cash ISA pot?
