The euro fell a penny to $1.35 as the Fed said “there are significant downside risks” the economy and HSBC’s index of Chinese manufacturing showed that factories slowed in the month of September. The iPath EUR/USD Exchange Rate ETN (NYSE:ERO) reflects the performance of the euro against the dollar.
China’s effort to slow expansion, and reign in inflation, is hurting Australia and Canada, which sell commodities to the world’s second-largest economy. The Australian and Canadian dollars are falling against the greenback, as traders expect commodity prices to fall.
Prices for gold and copper both fell, dragging down the Australian dollar as much as 900 basis points with yet another low at 0.9716.
The Aussie dollar appears to be heading directly to the next level of support at 0.9537, formed back in November. If the November support level is broken, the Aussie dollar could decline all the way to 0.9226.
The Currency Shares Australian Dollar Trust (NYSE:FXA) and the Currency Shares Canadian Dollar Trust (NYSE:FXC) seek to replicate the performance of the Australian and Canadian dollars, respectively.
The Power Shares DB US Dollar Index Bullish Fund ETF (NYSE:UUP) seeks to replicate the performance of the U.S. dollar against a basket of currencies, the euro, yen, British pound, Canadian dollar, Swedish krona and Swiss franc.
Emerging Money provides insightful and timely information about the increasingly important world of Emerging Market investments. CNBC Emerging Markets Contributor Tim Seymour leads the team of Emerging Money to bring you cutting edge global news and analysis.