Australia's dollar has received its fair share of whacking lately and perhaps it's time to give the currency a bit of a break, currency strategists say.
The Aussie dollar has shed almost 5 percent in the past two weeks against the U.S. dollar, hurt by signs of weakness in the Australian and Chinese economies, broad strength in the greenback and a continued fall in commodity prices. It is down roughly 8 percent from where it traded in early April.
"It [the Australian dollar] has been beaten up pretty badly and a lot of bad news has been priced into the currency in terms of [softer] domestic growth and Chinese growth as well as expectations of lower interest rates and commodity prices," said Mitul Kotecha, head of global currency strategy at Credit Agricole.
Australia's central bank cut interest rates by a quarter of a percentage point last month, helping to dent the appeal of the currency.
"We may see a bit more weakness against a resurgent U.S. dollar but I like the Aussie on the crosses. It's good value against the Kiwi [New Zealand] dollar, the Canadian dollar so I'm no way as bearish on the Aussie as some," he added.
The Aussie dollar was trading at about $0.98 on Tuesday, off an 11-month low hit on Friday around $0.9710 but holding below parity.