PHOTO: Australian Dollar

The Australian dollar hasn’t been this low since the markets crashed when the chaos of the Global Financial Crisis began.

The Australian dollar has plummeted to its lowest level since early 2009 after the Reserve Bank of New Zealand shocked the market by slashing its official cash rate by 50 basis points.

Many had expected the cash rate across the Tasman to be lowered by 25 basis points but it was pushed to just 1.0 per cent citing weakened global activity as the trade war between the US and China continues to rage.

“Heightened uncertainty and declining international trade have contributed to lower trading-partner growth,” the RBNZ governor Adrian Orr said. “Central banks are easing monetary policy to support their economies.”

Australia’s central bank held its cash rate on hold at 1.0 per cent on Tuesday, but the aggressive move from New Zealand means the likelihood of a cut next month is heightened.