It’s been a wild ride for Aussie dollar traders overnight with the Aussie holding, crashing, recovering and now slipping again.
Of course, that’s what you’d expect when global markets have been in such a funk for the past 24 hours.
Yesterday’s Asian stock weakness lead to falls on Europe’s stock markets of 5% or more and in the US, the Dow was down 1,000 points at one stage before rallying back a little. It’s down just 671 at the moment for a loss of more than 4%. The Nasdaq has lost around 4% as well, the S&P a little less.
Australia’s SPI 200 futures have come under pressure as well, falling another 194 points or roughly 4%.
These are not the conditions when the Aussie dollar does well.
So it will be no surprise that fell to 0.7058 overnight against the US dollar as a combination of a wild increase in traders’ fear about the global economic and market outlook.
It’s recovered around a cent since the low and is currently trading 0.7163, off 2.1%.
Here’s the chart: