The Australian dollar has hit a 22-month low against its US counterpart, as COVID-19 lockdowns in China strain the economy of Australia’s largest trading partner.

The Aussie was buying just 69.21 US cents on Tuesday morning, after staying almost entirely above the 70 cent mark since since July 2020. A little over a month ago it was buying 76 US cents.

Sydney-based City Index analyst Tony Sycamore, a veteran trader, called the move under 70 cents “pretty ugly.”

“That’s more of a technical level, but it’s also the macro community expressing the fact that growth prospects are coming under question because of the lockdowns in China, aggressive central bank tightening and other things that are going on — worldwide supply disruptions, the war in Ukraine etc,” he told AAP.

The Aussie was also down against the yen, euro and pound, although it had edged higher against the kiwi.

Derek Rose
(Australian Associated Press)