Source: ForexYard
A drop in Chinese equities saw the Australian dollar fall to a new year low.
The Aussie Dollar dropped 0.7% to $1,0375 right back to the rate it was traded at the beginning of the year.China, the worlds second largest economy receives a large amount of exported commodities from Australia, and thus its no surprise that the Australian currency will take a hit with negative news coming out of China.
The Euro suffered losses against the US Dollar amid concerns that the Euro-zone leaders could possibly increase the size of the rescue fund.
Wednesday’s trading saw the U.S dollar making some hard fought gains over the Euro. The Euro fell to $1,3298 from $1,3331 during North American Trading late Tuesday, as euro-zone finance ministers apparently discussing a plan to boost the region’s firewall in order to contain the debt crisis.
The Greenback also showed its strength by trading up against 16 of its Major Counterparts due to concerns of slowdown in global growth, causing investors to turn to the safe-haven currency.
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