The Australian dollar has crashed to a six-year low in a wave of risk asset selling on global markets.
A short time ago the Aussie was trading at 0.6861 against the US dollar, having fallen as low as 0.6834 during the Wall Street trading session.
Following some disappointing US economic data, especially on manufacturing, the Dow was down more than 500 points at one stage and the S&P 500 fell as much as 3%, crossing below its August 2015 sell-off low. US treasury yields fell and West Texas Intermediate crude oil and Brent crude — the US and international benchmarks — are back below $US30 a barrel.
The Australian currency has been caught in the sell-off and staged its small recovery in line with US stocks at the end of the week’s trade. Here’s a chart, via Finviz, of the Aussie dollar’s march south this year:
The slide in US stocks The Australian stock market also crashed yesterday to its lowest level since July 2013, with sentiment collapsing through the Asian trading session. ASX futures have headed sharply lower in the Wall Street session, indicating the pain could well extend into Monday’s trade.
Here’s the ASX / SPI futures chart, via investing.com.