By Lorna Nicholas

The Aussie dollar tumbled to decade lows this week – dropping to US67.24c on Monday, before slipping further late on Friday to US67.1c.

Triggering the fall was an escalation in the ongoing US-China trade war with US President Donald Trump threatening to increase current tariffs on US$250 billion of Chinese imports from 25% to 30% from 1 October.

He also said he will bump planned tariffs on a further US$300 billion worth of Chinese goods from 10% to 15%.

President Trump has now gone so far as to tell US companies to find alternative sources of business than China.

Currency experts anticipate the trade war will continue to cause the Chinese yuan to fall, which is also at decade lows – hitting 7.147 per US dollar on Monday.

The declining yuan is pressuring the Aussie dollar and analysts have been predicting a continuing decrease for the Australian currency, with Capital Economics’ touting the dollar will drop to US60c.

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