AUD/USD falls to its lowest since 2009

• Sharp U-turn in Wall Street following Apple’s report sent the dollar up on demand for safety.
• AUD/USD now trying to stabilize above 2016 low of 0.6826.

The collapse of US equities after Apple cut its first-quarter revenue guidance triggered some wild movements across the FX board, exacerbated by thin volumes, with markets slowly returning from holidays and even some markets still closed. The movement was so abrupt that there is no clear consensus on where the pairs bottomed, although one thing is sure: the AUD/USD pair broke below its 2016 low of 0.6826 and traded at levels last seen on March 2009.

Now trading around 0.6860, the pair has been under strong selling pressure these last couple of weeks as soft Chinese data arose ruling concerns about a global economic slowdown. In fact, it’s not just about China, as this Wednesday, data showed that European business activity ended 2018 on a sour note.

Major pairs will now struggle to find some sort of equilibrium prices and would likely remain choppy and volatile, yet another leg lower below the mentioned 0.6826 will probably anticipate a continued decline for this Thursday, beyond macroeconomic releases.