Roller Coaster Continues - AUD sharply lower, Gold drops US$40
20 March 2008
The AUD, Equities, and Commodity Prices all sharply lower overnight.
Global risk aversion spiked higher yet again on concerns about the health of the US economy and financial system. This weighed heavily on US equity markets, commodity prices and commodity & carry trade currencies such as the AUD.
The AUD-USD traded below 0.9150, US Equities fell 2.5%, Gold dropped over US$40 to US$944 per oz - it was over US$1000 two days ago - and oil is 5% lower.
Position squaring ahead of the Easter break, an stop-losses being triggered also contributed to the AUD's fall. Volatility will remain the constant in the financial markets.