Forex trading: a fright in the Morning for the Aussie Dollar and Turkish Lira

the fright in the Morning: The Australian Dollar has lost, on Thursday morning, quite surprisingly, within minutes, nearly 8 percent of its value on the Japanese Yen, the Turkish Lira lost 10 percent. In the maelstrom of other currencies. With 67,49 American Dollar the Aussie touched it in the short term, the lowest level in a decade. Dealer in Sydney spoke of a “crazy market” and a “flash crash”, a lightning-fast collapse.

Christoph Hein

Economics correspondent for South Asia/Pacific, based in Singapore.

F. A. Z.

Within six minutes after 9.30 am Australian time, the Australian dollar fell rapidly against the Japanese Yen. Over the years, the two currencies of the currency speculators for the so-called Carry Trades were used in the a low interest money that was then invested in the other for high interest rates. Also, compared to the Turkish Lira, the Yen shot through the roof and won 10 percent.

traders were completely surprised and had no explanation for the process. Some traders refer to a shock after the warning from Apple as a trigger, other suspected Japanese retail investors are behind the losses. The entries were then examined by computer algorithms extended. In Japan, as holiday time is, and was, moreover, little liquidity in the market. The same time, but the prices of copper and aluminum, important raw materials from Australia fell about 2 percent in London.

The Yen is considered to be one of the classic safe-haven currencies in times of crisis. He has won in the past year, compared with virtually all other currencies, because the world economy is under pressure and the shares had to accept markets and significant price losses. As the single currency of the ten leading industrial countries of the Yen in 2018 was also 2.7 per cent, compared to the strong American Dollar.

Also, the Australian Dollar has been going on for months, lost value. In December alone, the “Aussie had lost” 3.4 percent to the Greenback. Last year he ended with a loss of almost 10 percent, after having in the year 2017, by 8.7 percent. This development makes the Study and holidays on the Fifth continent, although cheaper, more expensive, but the trips abroad, the Australian, and particularly affected the exporters, such as big mineral companies, the bill traditionally in American dollars.