- The Australian dollar has been driven lower by a drop in commodity prices, as China introduces new COVID-19 measures
- Often known as a commodity currency, the drop in prices saw the Aussie dollar depreciate as Australia’s terms of trade weakened.
- As Australia’s biggest trading partner, the additional pandemic restrictions in China also weighed on the dollar, which is now trading 70 US cents
- The market’s risk averse mood carried over to cryptocurrency markets, with the price of Bitcoin crashing to $45,066
The Australian dollar has been driven lower by a drop in commodity prices, as China introduces new COVID-19 measures.
Additional restrictions have been introduced in Beijing and Shanghai, as the country shows no sign of letting up its Covid zero policy.
The move saw prices of commodities plummet, with concerns over weakened demand from the country.
Many investors have fled towards the US dollar as a safe haven, which has added further pressure to commodity prices, as it becomes more expensive for buyers holding other currencies.
Oil led the declines, with iron ore, gold and copper also falling lower.
Often known as a commodity currency, the drop in prices saw the Aussie dollar depreciate as Australia’s terms of trade weakened.
As Australia’s biggest trading partner, the additional pandemic restrictions in China also weighed on the dollar, which is now trading 70 US cents.
The market’s risk averse mood carried over to cryptocurrency markets, with the price of Bitcoin crashing to $45,066. Similarly Ethereum, Binance, Solana, and Cardano have all fallen over the past week.