Charting the Markets: Aussie Run Ends as China and the Fed Loom

Global markets continue to be swayed by ongoing concerns about China and Thursday's U.S. interest rate decision. Weekend data on industrial production and investment is continuing to rattle Chinese investors with the Shanghai Composite posting its biggest two-day drop in three weeks. The probability of the Fed hiking the cost of borrowing remains at 28 percent, according to futures contracts, down from 54 percent in early August. Asian and European stocks alternated between gains and losses.

Australia's dollar dropped after the nation's central bank said China's slowdown and market volatility increased risks to global growth. The warning came in minutes of the Reserve Bank of Australia's Sept.1 monetary policy meeting and brought an end the Aussie's six-day run of gains, the longest for almost two years. Former Goldman Sachs banker Turnbull was chosen as the country's new Prime Minister yesterday after he challenged Tony Abbott for the leadership of the ruling Liberal Party. The Australian dollar has dropped 13 percent against its U.S. counterpart in 2015.