Australia: S&P/ASX 200 (.AXJO) pointing to a fall in the ASX at the start of trade

Australia: S&P/ASX 200 (.AXJO) pointing to a fall in the ASX at the start of trade

Australia: S&P/ASX 200 (.AXJO) pointing to a fall in the ASX at the start of trade

The Aussie dollar has sunk to its lowest level against its US counterpart in a decade, and the Australian sharemarket has also finished lower, after the US Federal Reserve said its interest rate cut is unlikely to be the first of many.

The Aussie dollar is buying just 68.45 US cents, from 68.93 US cents on Wednesday, after the greenback rallied against other currencies.

Apart from a January 3 flash-crash that lasted just minutes, the last time the Aussie dollar was buying less than 68.50 US cents, which is where it was in the depths of the global financial crisis in early 2009.

The benchmark S&P/ASX200 index, meanwhile, closed down 23.7 points, or 0.35 per cent, to 6,788.9.

The broader All Ordinaries was down 24.8 points, or 0.36 per cent, to 6,871.9.

“There was a little bit of disappointment, given the confusion on Jerome Powell’s press conference,” said Bell Direct equities analyst Julia Lee.

The US Federal Reserve cut interest rates by 25 basis points on Thursday but Mr Powell, the Fed chairman, warned that it wasn’t “the beginning of a long series of rate cuts,” surprising many traders who thought it was.

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