Aussie Dollar Would Be Hit if Jitters Spread to EMs

By Anonymous

0147 GMT — In the immediate slipstream of the selloff in U.S. stocks, the Australian dollar has fallen to retest its earlier week lows just above US$0.7050, it’s lowest since early February 2016. This raises the question whether traders should now be on guard for further falls in the Aussie dollar through the US$0.70 psychological level and potentially the 2016 cycle lows near US$0.6825. NAB says not so fast. The Aussie has been trading this year as a proxy for emerging markets jitters. Were the developed market woes now being witnessed spread to the emerging markets, the Aussie would be at greater risk, NAB adds.