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

Australian dollar crash Source: Bloomberg

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 Apples 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.

This information/research prepared by IGA or IGA Group is intended for general circulation. 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 or 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. In addition to the disclaimer above, 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.

Please see important Research Disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.