If you have plane tickets out of the country, your trip likely just got much a lot more expensive.
In less time than it takes to pack your bags, the value of the Australian dollar deteriorated and the price of shopping shot up.
In just seven minutes the price of the Aussie dollar plummeted, reaching its lowest point in ten years, buying at one point less than 68 US cents.
That “flash crash”, which hit at around 9:30 on Thursday morning, was driven by a surging US dollar against other global currencies, according to InvestSmart’s chief market strategist.
“It wasn’t just the Aussie dollar … it was the Pound versus the US [dollar] and the Euro vs the US [dollar], they all had the same thing,” Evan Lucas told Your Money Live.
While the drivers behind sudden currency crashes are hard to pinpoint, there were some reasons why the drop was so dramatic.
Limited trading due to the holiday season and the Asian timezone likely exacerbated the fall, according to Lucas.
The move itself, however, was likely driven by poor forecasting for Apple and weak Chinese manufacturing data.
“All of that culminated in the idea that the US-China trade war is a problem, that China is slowing,” Lucas explained.
While it spells bad news for Australian travellers and consumers, a weaker dollar will help boost mining profits and bolster exports.
Watch above for full analysis of where the Aussie dollar is headed next.