Once again it is the latest decline in the Aussie dollar that is attracting most interest in the forex market this morning. After reaching a high of 1.0560 yesterday and looking relatively comfortable, the selling pressure since has been relentless, and in late Asian trading the AUD fell to a low of 1.0420. Not even a mildly encouraging RBA report on financial stability down under provided any assistance. Also worth highlighting is the Aussie's continued losses against other major currencies – GBP/AUD has climbed to 1.53 from a mid-February multi-decade low of 1.4556, and EUR/AUD is close to 1.28 (the mid-February low was 1.2133). Asian equities were softer overnight, with the Shanghai Composite again leading the way, down another 2%. The sluggish relative performance of both the Australian currency and the Chinese stockmarket are not unrelated – investors and traders share a suspicion that China is experiencing something rather more turbulent than a soft landing. For the month-to-date, apart from the BRL, the Aussie is the worst performer of the major currencies. Interestingly, it is the pound that tops the performance standings – these are rare days indeed!
Also in today's Daily Forex Brief:
- Oil prices now the biggest growth headwind
- Dark days ahead for the Dutch
- The wobbly won