 Markets are clearly in some risk aversion actions after Fed laid out the balance sheet runoff plan. Nikkei is leading other Asian stocks lower, after US indexes tumbled overnight. Australian Dollar is dragged down by the sentiment, followed by Kiwi and Loonie. On the other hand, Euro is recovering mildly for today. But for the week, Dollar is currently the strongest one, as supported by surging treasury yield and Fed expectations. Euro is still the weakest on dovish ECB and Ukraine uncertainty. Technically, Aussie is apparently turning weaker today, but the selloff is not disastrous. A focus will be on 90.74 support in AUD/JPY. As long as this level holds, firstly, AUD/JPY's outlook will stay bullish for another rally through 94.29 high. Secondly, that should help floor selling in Aussie elsewhere. However, firm break of 90.74 would be a warning that the tide in Aussie is turning near term bearish. In Asia, at the time of writing, Nikkei is down -2.00%. Hong Kong HSI is down -0.85%. China Shanghai SSE is down -0.76%. Singapore Strait Times is down -0.55%. Japan 10-year JGB yield is down -0.0087 at 0.236. Overnight, DOW dropped -0.42%. S&P 500 dropped -0.97%. NASDAQ dropped -2.22%. 10-year yield rose 0.053 to 2.609. |
