The Australian Dollar tumbled this week, with the risk-sensitive currency falling victim to a marked souring of market sentiment in recent days.
This came as coronavirus panic swept through markets, with surging cases and the threat of new lockdowns spooking investors and quashing risk appetite.
Putting additional pressure on AUD exchange rates was the growing expectation that the Reserve Bank of Australia (RBA) will cut interest rates to a record low of 0.1% when policymakers meet next week.
One ray of light for the Aussie was the publication of Australia’s consumer price index on Wednesday, which reported a slightly stronger-than-expected rebound in domestic inflation in the third quarter.
However, this provided only fleeting support for the Australian Dollar as a sell-off in equity markets and fears of a drawn out US election ensured a bearish tone prevailed.