AUD Volatility Near 2 Year High on China Credit Crunch Fears

The Australian dollar swung between gains and losses against its U.S. counterpart, with the currency pair’s volatility near the most in 1 1/2 years, as a cash squeeze in China roiled demand for higher-yielding assets.
The Aussie struggled to sustain a two-day rally as China’s central bank signaled it will keep efforts to curb credit growth and the nation’s shares sank into a bear market. Australia’s government bonds rebounded after Federal Reserve Bank of Dallas President Richard Fisher said investors shouldn’t overreact to the U.S. central bank’s plan to slow bond purchases.

via Bloomberg

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