The little Aussie Battler (the Australian Dollar) also had a significant move over the last 12 months, moving from around 78c, up to almost 82c, then falling to around 70c. The trading range of 11.9c was the widest since 2014, showing volatility has crept into foreign exchange markets too. The moves were a reaction to strengthening interest rates in the US and poor trade/economic growth sentiment for our major trading partner – China.
Blink and you may have missed the “flash crash” last week as the AUD slipped below US70c for the first time in three years. The crash was so swift, that it briefly touched US67.5c catching traders by surprise. It was in response to weak Chinese and global manufacturing data which was was published.
The AUD has since recovered and is tracking above 70c again.