Seven minutes of chaos: The 'flash-crash' that rocked currency markets
It took seven minutes for the yen to surge through levels that have held through almost a decade.
Traders are still seeking to piece together what happened just before 9:30 a.m. in Sydney, when orders came to sell Australia's dollar and Turkey's lira against the yen. While some pointed to risk aversion triggered by Apple cutting its sales outlook, others said Japanese retail investors were behind the trades. Whatever the cause, the moves were exacerbated by algorithmic programs and thin liquidity with Japan on holiday.
The results: the yen jumped almost 8 per cent against the Australian dollar to its strongest since 2009, and surged 10 per cent versus the Turkish lira. The Japanese currency rose at least 1 per cent all its Group-of-10 peers, bursting through the 72 yen levels against the Aussie that has held through a trade war, a stock rout, Italy's budget worries and Federal Reserve rate hikes.
"The moves were very violent," said Stephen Miller, an adviser at Grant Samuel Funds Management Pty in Sydney and former head of fixed income at BlackRock Investment Management (Australia).
https://www.smh.com.au/business/markets/seven-minutes-of-chaos-the-flash-crash-that-rocked-currency-markets-20190103-p50pey.html