This would translate to risks for more losses in the global markets, stretching as far as European equities, oil and commodity currencies
The sharp decline in nearly all commodity prices and the weakening in commodity currencies
creates headwinds for oil demand in the commodity producing emerging markets in Latin America and the Middle East.
The bearish Chinese data has added to worries about a 40 per cent slide in iron ore prices this year and further soured sentiment for commodity currencies
These four currencies are generally known as commodity currencies
However, investors are wary that a supply shock could hurt global recovery prospects and hit the less-liquid and riskier commodity currencies
growth are supportive for commodities and weakening commodity currencies
are providing a fillip for the miners," it wrote in a note.
Com Commodity currencies
, are currencies of countries that heavily depend on commodity exports.
Of the three main EM commodity currencies
(BRL, ZAR, RUB), RUB has better fundamentals.
The latest IMF reserves data shows that central banks allocations to the Euro have now fallen below 24 per cent at the expense of A commodity currencies
such as the Norwegian kroner, Australian dollar and the Canadian dollar.
The weakness in currencies last week was in commodity currencies
and the Yen.
The recent falls in commodity currencies
, including the Australian dollar, show how volatility in global markets could present trading opportunities for forex traders.
The yen advanced while the dollar strengthened versus commodity currencies
as Wall Street's biggest sell-off since December 2008 prompted a massive flight to safety.