The Australian dollar continued its downtrend today after local retail sales disappointed the market with some analysts now predicting that a fall below US60c is not out of the question.
At 8.19pm (GMT) the Aussie dollar was trading at US70.11c down from US70.37c in yesterdays close.
The Australian government introduced a package to help small business, but it seems like the move has backfired with the latest retail sales figure hitting the market at its lowest level in recent times.
"The Government's budget stimulus to small business was short-lived," Citi economist Josh Williamson said.
"As we expected, the accelerated depreciation policy was just an end-of-year tax benefit with little real economic value.
"We were never optimistic about the small business assistance package but its half-life was even less than we expected." He added.
Deutsche Bank chief economist Adam Boyton was one of the few economists who predicted the collapse of the Australian dollar back in 2014, and has continued his bearish stance predicting the possibility of the Aussie currency falling below US60c.
"I wouldn't be surprised if the Australian dollar is printed with a 'five' handle in the next three years," Mr Boyton said.
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