The Australian dollar’s ascendance to parity with the US dollar has come undone in recent weeks. But it’s too soon to dismiss the fallen currency, even if its downward trajectory since mid-April means it’s competing with the Syrian pound for the dubious title of worst-performing currency in the world.

Since April 11, the Aussie has dropped from USD1.055 to USD0.962. An 8.8 percent decline over a period of about six weeks may not seem all that precipitous when compared to the sharp moves that some equities make, but it’s huge in the world of currency trading.

Of course, the Aussie has traded higher than the US dollar in the past. In fact, it traded well above parity with the US dollar for the entirety of the 1970s. But toward the middle of that decade, the Aussie began a 25-year decline, during which it fell below parity in mid-1982 and ultimately bottomed near USD0.49 in early 2000.

Thereafter, the commodity boom propelled the Australian dollar upward, thanks in part to the monetary profligacy of the US Federal Reserve and the perception of the Aussie as a resource-backed currency. The Aussie’s impressive ascent understandably paused amid the 2008-09 Great Recession, but then began anew in early 2009, until the currency finally achieved parity again with the greenback in late 2010.

Since then, it’s slipped below parity on several occasions. Among the key differences this time around, however, is the fact that the resource boom is peaking, and consequently the rate of Australia’s economic growth is slowing to a pace below its long-term trend. Meanwhile, the Reserve Bank of Australia (RBA) is in rate-cutting mode.

Australia is one of the few developed-world countries whose central bank currently has an overnight lending rate in excess of 1 percent. Earlier this month, the RBA lowered its cash rate by 25 basis points, to 2.75 percent, and is widely expected to cut that rate at least once more before the end of the year.

But even if the cash rate ultimately bottoms at 2 percent next year, that’s still twice as high as the comparatively hawkish Bank of Canada’s overnight rate, which despite the bank’s upward rate bias is currently set at 1 percent.

One of the key reasons the RBA maintains higher short-term rates than its central bank peers is to offset Australia’s persistent current account deficit. The higher rate attracts foreign capital inflows, which have been a key factor in the Aussie’s incredible run.

But while US investors have enjoyed having their returns in ASX-listed securities juiced by an appreciating currency, the Aussie’s relative strength has posed a significant headwind to its domestic economy. Indeed, one of the RBA’s goals has been to use the levers of monetary policy to force the Aussie lower in order to make the country’s exports more competitive globally.

If a lower exchange rate can help the economy find its footing, then presumably that will flow through to equity prices. For now, the magnitude of this latest selloff appears to be driven by traders forced to unwind bullish bets that employed leverage.

According to the Wall Street Journal, foreign reserves that hold Aussie-denominated assets have yet to participate in the selloff. That steadfastness should provide considerable support to the beleaguered currency, even if the Aussie ends up trading in a lower range against the greenback.

And that brings us to the other factor in this story, which is the US dollar’s surge in light of speculation that the Federal Reserve could curtail at least some of its extraordinary easing. Since that news broke, the US dollar index, which compares the dollar’s value to a weighted basket of six foreign currencies, jumped from 81.85 to as high as 84.35, before settling recently at 83.62.

Stronger-than-expected US economic data have further fueled expectations that the Fed could begin tightening. But as Westpac Chief Economist Bill Evans noted recently, the Fed’s written statement was more cautious than Fed Chief Ben Bernanke’s extemporaneous remarks about the possibility of lifting easing. The written mode of communication offers a more likely forecast of future policy moves, with the big issue being further improvement in the US labor market.

Until that happens, the Fed will stand pat, which should mean the Aussie will rebound once the market understands that sometimes speculation is just that, and nothing more.

In the near-term, however, more downward volatility is likely, especially since many traders rely on technical analysis, and the Aussie fell through what they describe as a “key support level.” Longer term, the Aussie’s strength will largely depend on whether the US economy is truly resurgent.

The Roundup

Here’s when AE Portfolio Holdings will report their next sets of financial and operating numbers. Some have “confirmed” dates, while for others we’ve provided an “estimate.”

For most, this will cover the full fiscal year ending June 30, 2013. We’ve noted for others that report on a different schedule the period to which the announcement pertains.

Conservative Holdings

• Aberdeen Asia-Pacific Income Fund (NYSE: FAX)–N/A (fund, reports holdings on a quarterly basis)
• AGL Energy Ltd (ASX: AGK, OTC: AGLNF, ADR: AGLNY)–Aug. 21, 2013 (estimate)
• APA Group (ASX: APA, OTC: APAJF)–Aug. 21, 2013
• Australand Property Group Ltd (ASX: ALZ, OTC: AUAOF)–July 24, 2013 (2013 H1, confirmed)
• Australia & New Zealand Banking Group Ltd (ASX: ANZ, OTC: ANEWF, ADR: ANZBY)–April 30, 2013 (FY 2013 H1, confirmed)
• Cardno Ltd (ASX: CDD, OTC: COLDF)–Aug. 13, 2013 (estimate)
• CSL Ltd (ASX: CSL, OTC: CMXHF, ADR: CMXHY)–Aug. 21, 2013 (estimate)
• Envestra Ltd (ASX: ENV, OTC: EVSRF)–Aug. 22, 2013 (estimate)
• GPT Group (ASX: GPT, OTC: GPTGF)–Aug. 12, 2013 (2013 H1, estimate)
• M2 Telecommunications Group Ltd (ASX: MTU, OTC: MTCZF)–Aug. 26, 2013 (estimate)
• Ramsay Health Care Ltd (ASX: RHC, OTC: RMSUF)–Aug. 22, 2013 (estimate)
• SMS Management & Technology Ltd (ASX: SMX, OTC: SMSUF)–Aug. 14, 2013 (estimate)
• Telstra Corp Ltd (ASX: TLS, OTC: TTRAF, ADR: TLSYY)–Aug. 8, 2013 (confirmed)
• Transurban Group (ASX: TCL, OTC: TRAUF)–Aug. 6, 2013 (estimate)
• Wesfarmers Ltd (ASX: WES, OTC: WFAFF, ADR: WFAFY)–Aug. 15, 2013 (estimate)

Aggressive Holdings

• Amalgamated Holdings Ltd (ASX: AHD, OTC: None)–Aug. 22, 2013 (estimate)
• Ausdrill Ltd (ASX: ASL, OTC: AUSDF)–Aug. 28, 2013 (estimate)
• BHP Billiton Ltd (ASX: BHP, NYSE: BHP)–Aug. 21, 2013 (estimate)
• GrainCorp Ltd (ASX: GNC, OTC: GRCLF)–May 16, 2013 (FY 2013 H1, confirmed)
• Mineral Resources Ltd (ASX: MIN, OTC: MALRF)–Aug. 15, 2013 (estimate)
• Newcrest Mining Ltd (ASX: NCM, OTC: NCMGF, ADR: NCMGY)–Aug. 12, 2013 (estimate)
• Oil Search Ltd (ASX: OSH, OTC: OISHF, ADR: OISHY)–Aug. 12, 2013 (2013 H1, estimate)
• Origin Energy Ltd (ASX: ORG, OTC: OGFGF, ADR: OGFGY)–Aug. 22, 2013 (estimate)
• Rio Tinto Ltd (ASX: RIO, NYSE: RIO)–Aug. 8, 2013 (2013 H1, confirmed)
• Spark Infrastructure Group (ASX: SKI, OTC: SFDPF)–Aug. 26, 2013 (2013 H1, estimate)
• Woodside Petroleum Ltd (ASX: WPL, OTC: WOPEF, ADR: WOPEY)–Aug. 21, 2013 (2013 H1, estimate)
• WorleyParsons Ltd (ASX: WOR, OTC: WYGPF, ADR: WYGPY)–Aug. 28, 2013 (estimate)