- Australian dollar 'flash crash' sends it to an 11-year low for 20 seconds
- Traders blame the crash on algorithmic trading platforms
- Panic hitting markets has increase volatility
AUD to USD exchange rates
|In the last week||0.6472||0.6655|
|In the last month||0.6464||0.6748|
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.
– 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.