Economics
Here’s Why the Australian Dollar Is the Most Volatile Major Currency
- Jobs data, Westpac call, trade talks, coal ban buffet Aussie
- Chinese ban on Australian coal escalates simmering tensions
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The Australian dollar is showing why it has been the most volatile Group-of-10 currency in the past month, swinging about 1.7 percent just in one day.
This is how Thursday’s events unfolded: the Aussie jumped on a surprise beat on jobs data, forcing traders to close short positions. Less than an hour later, it sank when an influential economist at Westpac Banking Corp. said the central bank may cut rates twice. The Aussie got a reprieve on reports that the U.S. and China are nearing a trade deal, only to plunge more than 1 percent when Reuters reported that a Chinese port customs has banned its coal shipments indefinitely.