Commodity currencies are getting smoked.
Following last night’s move by China to devalue the yuan by nearly 2%, Australia and New Zealand, two of China’s major trading partners, saw their currencies get slammed.
And on Tuesday morning, the kiwi and the Aussies dollar were both extending their losses against the US dollar, with the kiwi down 1.2% to below $US0.66 and the Aussie dollar falling 1.6% to below $US0.73.
And now with the price of oil sliding to a fresh 6-year low, Canada — a major oil exporter that has slipped into recession — is joining the mix as the “loonie” is falling to nearly its lows against the dollar hit earlier this month.
Meanwhile, stock markets in the US are selling off and after a rally to start the week, its choppy in global markets on Tuesday.
Here’s the US dollar’s rally against the loonie, with the US dollar now buying more than $US1.31 Canadian.
While the kiwi and the Aussie dollar are continuing their slides.