Australian dollar collapses overnight to lowest level in almost a decade
The Australian dollar touches one of its lowest levels since 2009 in overnight trading, sparked by Apple’s share drop
The currency chaos comes after Apple’s Q1 forecasts warned of a slowdown in China, causing Apple shares to tumble along with shares of suppliers, Skyworks Solutions Inc. and Broadcom Inc.
Currency markets have struggled to recover on Thursday after volatility overnight saw Apple shares drop 7.5% when the technology giant cut its forecasts for Q1.
S&P 500 futures fell 1.5% and US stock index futures tumbled were dragged down in response, as fears of a global economic slowdown were heightened after the cut in revenue.
Apple's warning on sales in China sparked the collapse of the Australian dollar, touching one of the lowest levels since 2009 overnight.
On Thursday the AUD/USD struggled to climb back above 0.700 sitting just under at 0.6900. The Australian dollar hasn’t fallen below 0.700 since 2016.
Analysts say while the Apple forecast trim sparked the crash, the Australian dollar had already begun to fall on Wednesday’s day trade after weak Caixin Chinese data.
The Apple forecasts dragged down US Tech 100 index by 2.26% and Wall Street wasn't far behind, down 1.33% .
The Yen jumped to the highest level since March in early Asian trading on Thursday triggered by the Australian dollar’s loss.
Australian export stocks jump
While the AUD/USD struggled to reach above its 0.700 on Thursday, the sharp fall sparked the buying of export-oriented stocks.
The S&P/ASX200 index climbed 73.8 points.
Mining stocks and gold surged in response, with Pilbara Minerals Limited the top gainer among miners, climbing 14.4%.
Gold producers Newcrest Mining Ltd and Evolution Mining Ltd rose 2.5% and 1.8%
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.