Reporting on this piece in Japan’s Nikkei but I’ll add a caveat (the article already does, but I’ll add another).
- The currencies of Australia, South Korea and Brazil — nations reliant on a healthy Chinese economy — are facing sell-offs in the market as fear of an economic slowdown in China spreads.
- “When China sneezes, Australia catches a cold.” So says Tokuhiro Wakabayashi, co-branch manager of State Street Bank and Trust’s Tokyo branch, commenting on the Australian dollar’s sharp depreciation.
Nikkei adds, which is best viewed as a caveat although maybe they didn’t intend it that way:
- The currency touched a roughly nine-month low against the U.S. dollar last week.
- The Australian dollar also recently dipped under 80 yen, marking a year-to-date low.
Yeah … be wary of pieces in mainstream press warning on currency moves ahead. Good of the Nikkei to note AUD is already hitting 9 month lows against the USD … markets tend to take a forward view and the situation on the ground in China (economy losing momentum) and Australia (mounting coronavirus cases recently) has been a hot topic amongst traders for many months already. Not fresh news.
Nikkei piece is here for more (may be gated).
Weekly AUD/USD chart:
