Australian dollar has collapsed from nearly matching the US dollar in July.
key reasons for the historic slide
Australia's relatively high interest rates drew investors, especially from Japan, to sink their hard-earned into Aussie dollars. When the dollar dropped, however, those gains were wiped out, scorching investors who won't be back soon.
Commodities account for about half the country's exports. All good when their prices are rising, but a drag when they aren't. Iron-ore and coal are the two biggies in value terms, and prices for both are set to be slashed at coming meetings with Chinese and other Asian buyers.
Yawning deficit.
Australians have been buying more from overseas than we export for years. When dividends and debt repayments are taken into account, the gap is among the largest
The RBA has 'intervened' twice
slow the dollar's slide. That means it's been buying Australian dollars
signalling to traders that dumping the dollar is not a one-way bet.
