ASX 200 down, Aussie dollar holds firm

The news: The ASX 200 lost 0.67% to close at 7,230.40. The All Ordinaries lost 0.73%. The Aussie dollar held firm above USD0.64.

The numbers: Information technology led the losses, falling 2.69% during trading, following the suit of US stocks. Xero took a hit of 3.84%, while WiseTech Global dipped 2.53%. Energy stocks shed 1.47%, with Woodside down 1.27% at $37.84 and Santos down 1.64% at $7.78. Financials were down 0.50%. ANZ and Westpac made slight gains while NAB and CBA were down 0.34% and 0.61% respectively. Consumer discretionary also lost its shine, down 0.84%, with Wesfarmers leading the losses, down 0.88%.

The context: The Australian sharemarket had the jitters after major US indices ended sharply lower on Friday. Strong economic data last week eased concerns about a US recession but traders are nervous about the Federal Reserve’s path on interest rates. The central bank will meet on Wednesday to make a call on rates. The Bank of England is anticipated to hike for the 15th time to 5.5% on Thursday when Sweden’s Riksbank is also set to meet. The Bank of Japan will meet on Friday.