Australian dollar recovers after a flash crash to 63 cents

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In short

  1. Australian dollar 'flash crash' sends it to an 11-year low for 20 seconds
  2. Traders blame the crash on algorithmic trading platforms
  3. Panic hitting markets has increase volatility

AUD to USD exchange rates

TimeOpenLowHigh
Today0.6597
In the last week0.64720.6655
In the last month0.64640.6748

The Australian dollar collapsed more than 5% in 20 minutes as a mixture of panic and programmatic trading brought the exchange rate tumbling. It did recover to finish the day close to where it began.

If you ever wondered what would happen if someone lobbed a hand grenade into a bloodbath, now you know. It’s not pretty

– Gavekal Research analyst Tom Holland

Foreign exchange volatility consumed markets with wild movements across the board.

  • The AUD to USD exchange rate crashed to an 11-year how before recovering around 66 cents
  • The AUD to EUR exchange rate lost 3% at the same time of the flash crash before coming back
  • The AUD to GBP exchange rate dipped below 0.5000 for the first time since May 2016
  • The AUD to JPY exchange rate dropped but did not make as strong a comeback as the AUDUSD
  • The AUD to NZD exchange rate traded sideways as the Kiwi dollar lost almost as much ground as the Aussie

Outside of an ECB meeting, there is little economic data out that will take the focus away from the impacts of COVID-19.