A key factor behind the falling value of the Australian dollar is the strengthening of the US dollar. The US economy is currently in its third interest rate cut cycle and is expected to continue with more cuts. Typically, a reduction in interest rates weakens the dollar, especially if other currencies remain strong, and increases the flow of US funds. However, this trend isn't occurring as expected. Despite the interest rate cuts, the US dollar continues to lose strength, while the Australian dollar remains relatively stable.