US Dollar drops to an eight month low on Australian inflation
Chinese bad loans write off spreads fear throughout markets
A look back at the past 24 hours of Forex trading using movements in the US Dollar Index:
US Dollar 15-Minute 12:00 10/22 to 12:00 10/23 EST
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The Dow Jones FXCM Dollar Index is trading slightly higher on Wednesday, as China led fears have sent risk-correlated currencies lower against safe-havens like the greenback.
The US Dollar lost ground against the Aussie towards the beginning of the Tokyo session, when Australian inflation was announced to have beaten expectations in the third quarter. US Dollar bottomed slightly later in the Tokyo session and set an 8-month low at 10,354.
However, the greenback index soon erased losses and rose above the session open on a news report that Chinese banks had written off three times as many bad loans in the first half of 2013 than they did in the previous year. Earlier in the year, many analysts had doubted China’s commitment to hit 7.5% growth in 2013; however, fears abated recently on improved economic data. Therefore, news implying that there are more problems with the world’s second biggest economy than understood by analysts could hurt risk appetite across all markets.
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Charts created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .
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