The Australian dollar is in a slump after being hammered by an unexpected collapse in oil prices.

The price of one US dollar fell below $US1.10 per barrel on Thursday, the lowest since November.

But it has now regained some of its ground against the US dollar and other major currencies, which have lost about $US3.50 to $US7.30.

The decline has been partly driven by an increase in gold, which rose to an average of $US15.25 per troy ounce this week from $US8.50 in November.

It is also the result of a strong global economic outlook.

The Australian economy has grown by about 3 per cent this year, the fastest rate in a decade, according to the latest data from the Australian Bureau of Statistics.

But the weak global economy has also weighed on the price of the Australian dollar, which is currently around a US dollar equivalent, around the same level as it was a year ago.

The country’s biggest banks are warning investors to avoid the US as they are concerned about the effects of the recent slump in the oil price on their balance sheets.

“I would say the big risk now is that the world’s economy is coming to an end,” said David Henshaw, an economist at the Australian National University.

“We don’t know how long that will last, but the real question is what will be left of the economy after the oil shock.”

The drop in the dollar was fuelled by a spike in gold prices.

In recent weeks, gold prices have surged to record highs.

“It was just the biggest one-day jump since July 2009,” Mr Henshawson said.

“If that happens, the dollar is going to have to do very well.” “

Australia’s major banks have warned investors to keep a close eye on gold and silver prices. “

If that happens, the dollar is going to have to do very well.”

Australia’s major banks have warned investors to keep a close eye on gold and silver prices.

“You might want to be mindful of any price change that is happening in those markets,” said John Williams, the head of banking at the Commonwealth Bank of Australia.

“At the moment, we don’t see the dollar appreciating that much at all.”

A strong US economy also has the potential to boost the Australian economy, which has struggled in recent years to get a foothold in global markets and boost job growth.

But Mr Williams said the strong dollar would have a negative impact on growth.

“A strong US dollar could potentially hurt our growth prospects in the short-term,” he said.

The collapse in the price and supply of oil and the collapse in global oil prices have both helped to lift the Australian manufacturing sector.

The slump in oil and gold prices has forced many companies to raise prices.

But those hikes have been offset by a strong dollar, a weak dollar and rising energy costs, leading to an overall decline in the value of Australian exports.

The Government’s decision to lower the government’s annual growth target from 6 per cent to 5.5 per cent was designed to help the economy rebound after the global economic downturn.

It has also seen the Reserve Bank cut interest rates and put more cash into the economy.

The Reserve Bank has forecast the economy will grow by about 1 per cent in 2018, but a number of economists have said the economy could grow even slower.

“The current economic situation is one that will persist for the foreseeable future,” Bank of America Merrill Lynch economist Richard Shiro said.

”The longer we wait for a recovery, the more the economy looks like a basket case.

“Even if the economy recovers in 2019 and 2020, the economy is still likely to be in a recession by the end of this year.”