Aussie down amid currency risk managementPublished by Mark Smith-HalvorsenThe Australian dollar fell to an eight-month low against its US counterpart in trading this morning (May 20th) as traders moved out of high-risk currencies.The currency also fell three per cent to hit a ten-month low against the yen as traders tightened their risk management frameworks and moved into hedge currencies.Dow Jones Newswires attributed the losses to a trinity of lower commodity prices, risk aversion and dwindling prospects for interest rate hikes in the antipodean country.Speaking to the news agency, BNP Paribas foreign exchange strategist Robert Ryan said: "It doesn't look pretty for the Aussie; the old comment about the falling knife. If you are thinking of getting in why not wait to see where it falls?"However, fellow analysts Richard Grace and Callum Henderson, of Commonwealth Bank and Standard Chartered respectively, said there are still positives for the currency and as such, a bounce should be expected.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site.