Tumble in Chinese markets impact AUD while USD sold off too

The Australian and New Zealand dollars dropped to two-year lows against the yen as worries about the Chinese economy sent investors rushing to safe haven assets.

Worries about a slowing Chinese economy, and in turn global growth, flared up last Friday after a survey showed a further deterioration in China’s manufacturing activity. There was a steep drop in the Chinese share market, which fell more than 7 percent on Monday.

The Australian dollar dropped against the U.S. dollar to $0.7241, from $0.7315 in New York on Friday, pulling closer to a six-year trough of $0.7217 touched earlier in the month.

The Aussie dropped below 88 yen for the first time in two years. It was last at 88.16, having lost around 1 percent.

The New Zealand dollar also fell versus yen, down 1.7 percent to around 80 yen, the lowest level since 2013. The kiwi slid 1 percent versus dollar to a session low of $0.6603, retreating from a three-week high of $0.6708 set last week.

The U.S. dollar was weak against the euro and yen especially. This weakness in the greenback reflected doubts that the Federal Reserve will be able to hike interest rates next month given signs of stress in global financial markets.

The euro jumped to as high as $1.1496, its highest level since February. It last stood at $1.1480, up 0.9 percent on the day.

The post Tumble in Chinese markets impact AUD while USD sold off too appeared first on Forex Circles.

Source:: Tumble in Chinese markets impact AUD while USD sold off too

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