AUD/USD drops nearly 300 pips in Asia to hit the lowest since 2002

• AUD/USD tanks 300 pips on haven demand for the US dollar. 
• Dovish RBA expectations keep the AUD bulls at the bay. 

AUD/USD fell to 0.5506 a few minutes before press time. That was the lowest level since 2002. 

Australia’s currency ran into offers at highs near 0.58 in early Asia and continued to drop even after the official data released at 00:30 GMT showed a surprise drop in the unemployment rate in February. 

The 300-pip sell-off seen in Asia could be associated with the broad-based haven demand for the US dollar and the dovish RBA expectations. 

The American dollar has become a preferred safe haven, as indicated by the greenback’s solid gains against the traditional anti-risk currencies like the Japanese yen. 

Meanwhile, expectations that the Reserve Bank of Australia (RBA) would cut rates to zero and announce a quantitative easing (bond-buying program) added to the bearish pressures around the Aussie. 

The pair is currently trading at 0.5570, representing a 3.3% slide on the day and a staggering 14% loss on a month-to-date basis. 

The RBA is scheduled to announce its rate decision at 03:30 GMT on Thursday. 

Technical levels