The Aussie dollar continues to go backwards after the Reserve Bank of Australia indicated that it would carry on slashing interest rates and that it would not do anything to try to fix the dollar at any given level.

The Aussie lost further value immediately after the release by the RBA of its November policy meeting minutes. This came on the back of a fall to a four year low of 64.32 US cents and the tumbling of the local share market to a four year low.

Clearly the RBA is quite pessimistic about the general outlook. They seem much weakened economic conditions and they have made it clear that there will be some big rate cuts to come.

Currency traders dumped the Aussie after the RBA cautioned that its policy of buying dollars over the past few weeks as the dollar slid towards 60 US cents was designed to improve liquidity and not intended to defend any particular level of the exchange rate. At a five year low of US 60.1 cents last month the Aussie has depreciated by more than 30% this year. It was about US ten cents below its US 70 cents post float average

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