AUD hit the hardest amid the risk-off flows

  • The Australian Dollar is down 2.9% against the US Dollar, 3.4% against the Japanese Yen and 3.8% against the CHF as China's retaliation news weighed on the AUD the most

Commodity currencies are generally very sensitive to global growth and they rise the most in risk-on environments and fall the most during negative sentiment.

The Australian Dollar is also very sensitive to macro events linked to China given that the country is Australia's biggest trading partner. We can see that the AUD is down the most against the "safe haven" currencies like USD, JPY and CHF.

Australian dollar
FX heatmap

If you are a beginner in FX, these days are a great learning experience because the next time you see similar developments, you will be prepared to respond appropriately. Experience is the best teacher.

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