AUD Volatility Near 2 Year High on China Credit Crunch Fears

The Australian dollar swung between gains and losses against its U.S. counterpart, with the currency pair’s volatility near the most in 1 1/2 years, as a cash squeeze in China roiled demand for higher-yielding assets.
The Aussie struggled to sustain a two-day rally as China’s central bank signaled it will keep efforts to curb credit growth and the nation’s shares sank into a bear market. Australia’s government bonds rebounded after Federal Reserve Bank of Dallas President Richard Fisher said investors shouldn’t overreact to the U.S. central bank’s plan to slow bond purchases.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza