Iron ore is sliding but the Aussie dollar is taking a pounding even as the USD tumbles:
Some of this is the growing “risk off” mood as S&P500 futures are down another -0.5% during the day but ructions in Chinese money markets are not helping, either, Via Goldman:
Interbank interest rates had been more clearly drifting higher in the past month, especially following the PBOC’s OMO rate increase last Thursday. In particular, the gap between R007 (general repo rate covering all counterparties including funds) and DR007 (covering only banks) has widened again in recent days, suggesting tight liquidity conditions faced by non-bank financial institutions (NBFIs) (Exhibit 1).