The Australian dollar briefly dropped 0.6 per cent to a low of US66.34 against the US dollar as sentiment continues to deteriorate across Asian markets.
The dollar was buying US66.52c in afternoon trade and Commonwealth Bank analysts expect risk appetite to further fall and weigh on AUD as the global and Chinese economic outlook weakens.
"We consider financial markets are lowering their expectations for a quick and large Chinese economic stimulus package as another day passes without any details from the government," CBA said.
"AUD/USD is likely to keep tracking lower to US65.47c (38.2% fibbo), especially if the USD receives a boost from strong labour market data on Thursday."
At the closing bell, the S&P/ASX 200 was 1.24 per cent lower at 7,163.40.
Futures
The Dow Jones futures are pointing to a fall of 110 points.
The S&P 500 futures are pointing to a fall of 15.75 points.
The Nasdaq futures are pointing to a fall of 68.25 points.
The SPI futures are down 100 points.
Best and worst performers
The best-performing sector was Information Technology, up 0.13 per cent. The worst-performing sector was Consumer Discretionary, down 1.91 per cent.
The best-performing large cap was Meridian Energy (ASX:MEZ), closing 4.36 per cent higher at $5.27. It was followed by shares in WiseTech Global (ASX:WTC) and Atlas Arteria (ASX:ALX).
The worst-performing large cap was Mineral Resources (ASX:MIN), closing 3.55 per cent lower at $70.00. It was followed by shares in Lynas Rare Earths (ASX:LYC) and Evolution Mining (ASX:EVN).
Asian markets
Japan's Nikkei has lost 1.73 per cent.
Hong Kong's Hang Seng has lost 3.03 per cent.
China's Shanghai Composite has lost 0.18 per cent.
Company news
Morella Corporation (ASX:1MC) has released results from drilling at the Mallina Project in WA, which is a joint venture between Morella and Sayona Mining (ASX:SYA). The mineralised strike has been extended up to 300m, and new zones of mineralisation have been identified. Morella Managing Director James Brown stated: “The future looks bright for this well-located, highly promising project with a commitment from Morella to accelerate additional drilling campaigns.” Shares closed 21.4 per cent higher at 0.9 cents.
Pacific Edge (ASX:PEB), a cancer diagnostics company, has been the beneficiary of welcome news. Novitas and First Coast have decided to delay the implementation of a Local Coverage Determination. This determination would have seen US Medicare coverage case for Pacific’s Cxbladder product, which is a urine-based test for bladder cancer. Shares closed 95.4 per cent higher at 17 cents.
Critical Resources (ASX:CRR) has intersected 74.4 metres of spodumene-bearing pegmatite at the company’s Mavis Lake Lithium Project in Canada. Managing Director Alex Cheeseman said, “targeted drilling will continue over the coming months and we are truly excited as to the resource potential of this world class asset.” Shares closed 26.2 per cent higher at 5.3 cents.
Commodities and the dollar
Gold is trading at US$1,925.90 an ounce.
Iron ore is 1 per cent higher at US$111.55 a tonne.
Iron ore futures are pointing to a 0.73 per cent rise.
Light crude is trading $0.12 lower at US$71.67 a barrel.
One Australian dollar is buying 66.70 US cents.
