The Australian and New Zealand dollars slumped to multi-week lows on Monday as investors rushed to safe-haven assets like the Swiss franc and gold, ignoring efforts by global policymakers to stabilise markets and restore confidence. The Aussie slumped to a four-month trough of $1.0314, from $1.0458 in New York on Friday, having cracked major support at $1.0375. The currency, down 1.2 percent on the day, gave in to heavy losses in Asian stocks and commodities.
Indeed, share markets across Asia sank between 2 and 5 percent, while metal prices and oil also fell sharply. The Australian dollar was also at multi-month lows against a range of currencies. It hit a 4-fourth month trough of 80.35 yen and a two-year low of 78.03 francs.
The Aussie, however, outperformed its neighbour at NZ$1.2455, edging up from a one-year low around NZ$1.2331 plumbed Friday. Across the Tasman sea, the kiwi fell to a near one-month low of $0.8262, from $0.8430 in New York on Friday, taking losses for the past week to around five cents as markets slashed rate hike bets. It was last at $0.8290, with support seen at $0.8205 and resistance around $0.8435. The kiwi also lost more ground to the Japanese yen, with the kiwi sliding to a near one-month low of 64.65 yen.