AUD/USD: Aussie dollar added to biggest annual drop since 2008 (London) - The Australian dollar added to declines overnight against the US dollar. AUD/USD is down 0.07 percent to USD0.8848. The declines add to a 15 percent decline on the year – the biggest annual drop since 2008.

Tropical Cyclone Christine will hit land tonight, with iron ore ports on Australia’s northwest coast shutting down over the weekend in anticipation. Hurricane Christine was upgraded to a Category 3 storm by the Australian Bureau of Meteorology.

The Aussie dollar has seen further pressure from anticipated weak Chinese data due tomorrow. Consensus expectations are for a decline in China’s purchasing managers’ index from 51.4 to 51.2.

The US dollar has seen a solid run of strength since the Federal Reserve announced that it would be scaling back its monthly asset purchases by USD10bn to USD75bn a month. The relative tightening comes amid an improvement in the US economic outlook.