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Investors dumped the Australian dollar and bonds on Monday after renewed fighting in the Middle East and a strong US jobs report raised the spectre of higher interest rates in both America and Australia in the months ahead.
The Aussie, often traded as a proxy for global risk, fell 1.2 per cent to its lowest level in two months at US70.45¢ after Iran launched ballistic missiles at Israel over the weekend in the most serious test so far of a fragile two-month ceasefire between the adversaries.
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