Investing.com - The Australian dollar held weaker on early Asia on Tuesday after a rough and tumble start to the week as investors focus on market turmoil in China.
In an otherwise thin data day regionally, plays for safe-haven assets will likely dominate.
AUD/USD traded at 0.7147, down 0.13%, while USD/JPY changed hands at 118.42, up 0.01%. EUR/USD was quoted at 1.1594, down 0.22%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.11% at 93.28.
Overnight, the dollar tumbled over 1% against the other major currencies on Monday, to hit an eight-month low amid a broad based selloff in global equity and commodity markets as mounting fears over a slowdown in China fuelled widespread risk aversion.
Wall Street opened sharply lower on Monday, after Chinese shares tumbled more than 8% overnight. The decline came as Beijing held back from implementing fresh measures to support Chinese equities after markets fell 11% last week.
Financial markets have been roiled since China devalued the yuan on August 11,exacerbating fears over a China-led slowdown in the global economy.
The dollar has come under pressure as mounting uncertainty over the global growth outlook and the subdued U.S. inflation outlook has prompted investors to scale back expectations for an initial rate hike by the Federal Reserve.