Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
The Australian dollar whipsawed in currency markets following its central bank's latest meeting. It was the weakest major currency in the world Tuesday morning after the Reserve Bank of Australia changed its statement to a more dovish stance.
Why it matters: Australia's GDP growth has shrunk on a per-capita basis in the last 2 quarters, entering a "per-capita recession" for the first time in 13 years. The country hasn't seen an outright growth recession in nearly 30 years, so investors are on high alert.
- It was the first rewrite of the final paragraphs of the RBA's statement "in ages," NAB foreign exchange strategist Rodrigo Catril told Australia's ABC News.
- "Traders are starting to position for a series of easing actions from Asian central banks," said Boris Schlossberg, managing director of FX Strategy at BK Asset Management.
- "Australian rates markets are now pricing in as much as 80% possibility that a rate cut will take place before the end of the year."
The big picture: Australia is seen as a proxy for China because of how much its major industries rely on trade with the world's No. 2 economy. Movements in the Australian dollar tend to reflect views on China, as its yuan currency is still far less traded on global FX markets.
- The Aussie dollar bounced back overnight after a Caixin/Markit survey showed activity in China's services sector rose to a 14-month high in March. That followed a major improvement in China's manufacturing sector.