The AUD has fallen off a cliff this morning and is down across the board.
The AUD/USD is down 2.5% on very little news.
We had weak Chinese data yesterday that saw price fall below 0.7000.
This morning we’ve also seen AAPL downgrade guidance, which is bound to lead to some risk-off in today’s US session.
Price is bouncing back now.
The JPY is also surging, as a safety play potentially.
More to come here.
Update: AUD/USD has recuperated almost all the losses today during the Asian session after the crash late in the US session. Thin liquidity of holiday markets surely played a role on the flash crash last night, amplifying the decline. The Aussie was one of the most damaged currency last night during that move because of the ties between the Australian economy and the Chinese markets but we are back to normal now, that move was just a wake up call for the new year. Although, my bias is still bearish for this pair, so I’m trying to pick a place to sell.