The AUD/USD pair fell to 0.7079 a few minutes before press time - the lowest level since February 2016 - beating the 31-month low of 0.7085 set in September.
The Australian currency has dropped 3 percent in the last three weeks.
The sell-off is likely associated with the rise in the spread between the 10-year US treasury yield and the 10-year Australian government bond yield. At press time, the 10-year US note is yielding 51.2 basis points more than its Aussie counterpart, the highest level since 1981.
Further, the slide in the EM currencies and increased prospects of the crisis in these economies is likely hurting the Aussie dollar.
Looking forward, the Australia dollar could slide further as the 14-day relative strength index (RSI) is still well short of the oversold territory and the EM currencies are falling fast. For instance, USD/INR has just hit a new record high of 73.76.
At press time, the AUD/USD pair is trading at 0.7083.
AUD/USD Technical Levels :
Resistance: 0.7085 (Sept. 11 low), 0.7178 (10-day EMA), 0.7202 (Aug. 15 low)
Support: 0.7016 (November 2015 low), 0.6893 (September 2015 low), 0.6827 (September 2016 low)
Source : Fxstreet