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New American sub-prime mortgage market fears resulted in the Australian dollar opening weaker today at $US0.9133/37.

According to a Sydney Morning Herald report, Joanne Masters, Macquarie Bank associate director, connects the change in trading conditions to the US banks and their downgraded earnings outlooks.

"It's a global story of risk aversion," she says. "Equity markets are still the barometer for risk appetite, so currencies like the Aussie trade on risk appetite and trade on how the US performs.

"To be honest, you haven't seen the full fallout from the sub-prime mortgage market so there's more potential bad news to come."

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