Australian dollar plunges on Chinese devaluation

August 12, 2015

The Australian dollar hit a new 6 year low today after the Chinese government unexpectedly devalued their currency devalued their currency for the 2nd time this week in order to kick start the economy.

The local currency hit a low of US72.15c within 1 minute of the announcement before recovering to around US73c by late afternoon.

The Chinese government described the 1st devaluation earlier in the week as a one off move so the 2nd one sent shockwaves through world markets with investors flocking to the US dollar.

The move will keep investors on edge, as another devaluation is now not off the cards, which will keep pressure on the Aussie dollar in the foreseeable future and may also cause more problems for Australia’s overvalued housing market.

Investment from China in Australia’s property market is already at record levels and if the Chinese feel that the Yuan will devalue further there may be a rush to convert the currency to purchase property which will only further inflame the housing sector.

Publication source
FIBO Group information  FIBO Group reviews

October 21, 2016
Gold prices drop in Asia amid stronger greenback
On Friday, gold dropped during Asia trade amid a strengthening greenback as well as surging chances of a rate hike weighing on the hedge commodity...
October 21, 2016
ECB holds the rate unchanged with the pressure on Draghi
After a brief upturn seen in the late Asian trading, the currency retreats to the Wednesday close showing a tepid response to the ECB policy update. The New York FED leader William Dudley comments offered a support to the Dollar rally although the focus remained on the US inflation...
October 21, 2016
EURGBP Tests Major Support
This morning we saw the release of German PPI YoY and MoM figures for September. The former fell to -1.4%, compared to expectations of -1.2%. The latter was -0.2%, in line with expectations...

Fort Financial Services Rating
HotForex Rating
Grand Capital Rating
FIBO Group Rating
Tickmill Rating
FxPro Rating

Banc De Binary Rating
EZTrader Rating
TropicalTrade Rating
Beeoptions Rating
OptionsXO Rating
OptionFair Rating