US banking groups Citigroup, Goldman Sachs, and JP Morgan are all due to report results of the US corporate earnings season and there is an unpleasant feeling that there is room for a downside surprise. In the anticipation of less than stunning predictions, the Australian dollar extended losses towards lows with an exchange rate at USD0.7733, down from Friday's close of USD0.7796.

Analysts are saying that as long as the global economy remains in a recession, then profits across all sectors are surely going to take a hit. The continuing recession will increase risk aversion and encourage investors to stray away from higher-yielding currencies like the Australian dollar. The sub-par earnings will most likely spur a rush to safe haven bonds and the US dollar at the expense of a strong come back from the Aussie.

The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.