Australian dollar hits its lowest point in more than five years

The Australian dollar fell below 78 US cents today, and while it is the sharpest decline since the Global Financial Crisis, it is said to be good news for mortgage holders.

The markets are betting the Reserve Bank will cut interest rates again on Tuesday, most likely by a quarter of a percent.

In the past six months the dollar has dropped 17 percent, meaning it is 17 percent more expensive to travel to the US or to buy imported goods.

A lower dollar is good for Australian businesses exporting their products overseas, and makes local products more competitive against imports.

Westpac Chief Global Strategist Robert Rennie said the Australian dollar is not expected to rise any time soon.

"Which means most people will have to be more careful when choosing where they travel and how they shop," he said.