The Australian Dollar is down again today as Wall Street suffers after further losses on the Chinese Markets. As of 7am (AEDT) today the AUD was trading at US69.61 cents, a fall from yesterdays US70.26 cents.
Overnight US equities fell sharply in response to a 2.4% drop in the Shanghai Composite Index on Wednesday. According to Stuart Ive, a senior client adviser for OM Financial, markets were relatively stable overnight, regardless of some weaker-than-expected US oil inventories.
This added pressure onto energy stocks and it’s now spread throughout, with consumer stocks now leading the charge on the downside for the Dow Jones.
He said “The Aussie had been unchanged against the greenback overnight but in the last two hours it’s come off.”
Mr Ive also stated that local job figures for December due for release today will also be a key contributor for the currency today.
Analysts are predicting that after to months of very large unexpected upside moves in Australian employment data that we may see a downwards movement as a correction which will place increasing pressure on the market this afternoon.
Most investors continue to focus on the Shanghai stock market where officials are trying to stabilise volatility.