Australian dollar falls on global jitters Market unease Bond yields at fresh lows Mark Mulligan The Aussie fell to US74.37¢ on Wednesday. Photo: Glenn Hunt After shrugging off the fallout from Saturday's still-undecided election, the Australian dollar has been caught up in a fresh bout of global jitters, sliding almost 1per cent during a choppy session on European and US markets. 
In late domestic trading, the Aussie was buying US74.37¢, compared with a high for the week of US75.45¢ on Tuesday, when the Reserve Bank of Australia opted to leave the cash rate at 1.75per cent.
Most economists expect the RBA to cut at the   August meeting, following the release of second- quarter inflation data later this month.
However, global events, and not local political uncertainty and the promise of more monetary stimulus, continue to dictate the Aussie's movements.
Most commodity-linked currencies slipped as the fallout from Brexit and a building financial crisis in Italy drove investors into safe-haven Japanese yen and US dollars and pushed global - including Australian - bond yields to fresh lows.
Commodity prices also adjusted down as the greenback rose, although gold got a further boost from the flight to safety.
The biggest loser was pounds sterling, which crashed another 2per cent against the US dollar as three of Britain's biggest real estate investment funds (REITs) froze almost $US12billion in assets over liquidity and value concerns.
The pound has lost almost 14per cent against the greenback since Britain's vote to leave the European Union, and is languishing below US1.30¢ for the first time since 1985.
BK Asset Management's managing director of foreign exchange strategy Kathy Lien warned on Wednesday that Brexit's direct impact on financial assets had only just begun to feed through to the markets.
"There's no question that Brexit puts significant stress on the financial sector, and property funds are only the first to feel the pain," she wrote in a research note. "Other sectors will start to implode, creating greater pressure on the UK economy and British pound."
Despite the fresh wave of market unease, and disappointing data this week, the Australian dollar would probably continue to outperform, she said, as the world's central banks were forced into another round of easing.
Even if the RBA does cut the cash rate to 1.5per cent next month, Australia's bond market still looks attractive in a world of zero and negative yields.
"In an environment of rapidly falling yields, it will be easy for investors to overlook softer data," Ms Lien said.
ANZ Banking's head of foreign exchange strategy Daniel Been agrees.
Mr Been added that investor association with the Aussie as a risk currency had been tempered by low global rates and the country's AAA credit ratings in a shrinking field of top-notch sovereign issuers.