Australian dollar hammered to new low

Oh yeh, it’s awwn in the Pacific peso. Last night we hit 87.3:

The last year in weekly shows another new low:

That is one bearish looking chart. There’s no support until 80 cents on the monthly:

The China Flash PMI was the proximate cause. And importantly, the falls came despite more downbeat data on US housing with the NAR Existing Home Sales falling year on year and upsetting markets. From Calculated Risk:

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 1.0 percent to a seasonally adjusted annual rate of 4.87 million in December from a downwardly revised 4.82 million in November, but are 0.6 percent below the 4.90 million-unit level in December 2012.

For all of 2013, there were 5.09 million sales, which is 9.1 percent higher than 2012. It was the strongest performance since 2006 when sales reached an unsustainably high 6.48 million at the close of the housing boom.

…Total housing inventory at the end of December fell 9.3 percent to 1.86 million existing homes available for sale, which represents a 4.6-month supply at the current sales pace, down from 5.1 months in November. Unsold inventory is 1.6 percent above a year ago, when there was a 4.5-month supply.

…Adverse weather reportedly delayed closings in many areas. Twenty-eight percent of homes sold in December were on the market for less than a month, down from 35 percent in November, which appears to be a weather impact.

That put a bid into bonds with the 30 year and 10 year yields both down 2% or so. Stocks choked 1%. Even more stark, the US dollar was smashed as well almost 1% and gold took off as taper is suddenly going to slow, seemingly:

The Pacific peso is now the world’s whipping boy. The crosses were wall-to-wall red:

Good riddance, “Australian moment”.