 Risk aversion continues in Asian session today, following the worst 2-day percentage drop in DOW in two years. Nevertheless, panic is no spreading to other markets so far. Gold is staying in consolidation below 7-year high of 1689, currently hovering around 1645. In the currency markets, Australian is currently the weakest one for today, followed by Yen. Dollar is the strongest, followed by Canadian and then New Zealand Dollars. Technically, AUD/USD's break of 0.6581 suggests that brief consolidation has completed and larger down trend has resumed. EUR/AUD also regains upside momentum and should target 1.6593 resistance next. USD/JPY's break of 110.28 support argues that near term trend might be resuming. Focus is back on 108.30 structural support next. USD/CHF will be a pair to watch, with focus on 0.9741 support. Break will suggest completion of rebound from 0.9613 and bring deeper fall to retest this low. That might also drag USD/JPY lower. In Asia, Nikkei closed down -0.79%. Hong Kong HSI is down -0.85%. China Shanghai SSE is down -0.74%. Singapore Strait Times is down -0.98%. 10-year JGB yield is up 0.0079 at -0.094. Overnight, DOW dropped -879.44 pts or -3.15%. S&P 500 dropped -3.03%. NASDAQ dropped -2.77%. 10-year yield dropped -0.047 to 1.330, new record low. |
