 Risk aversion stays in Asia after the -3% crash in Dow overnight. More importantly, treasury yields took another dive on recession fears. US 30-year yield even drops through 2% handle in Asia and hit as low as 1.964. In the currency markets, though, Australian Dollar rises generally after better than expected job data. New Zealand and Canadian Dollar shrug risk aversion and recover generally. At this time of writing, Sterling and Dollar are among the weakest for today, awaiting important data ahead. Technically, 1.1133 minor support in EUR/USD is a key focus today. Firm break there should indicate completion of rebound from 1.1026 and larger down trend might be resuming. Ideally, that should be accompanied by firm break of 1.0841 in EUR/CHF to confirm over weakness in Euro. Yen crosses will also be eyeing recent lows, in particular 105.04 in USD/JPY, 117.51 in EUR/JPY and 126.54 in GBP/JPY. In Asia, currently, Nikkei is down -1.46%. Hong Kong HSI is down -0.17%. China Shanghai SSE is down -0.62%. Singapore Strait Times is down -1.49%. Japan 10-year JGB yield is down -0.0183 at -0.238. Overnight, DOWN dropped -3.05%. S&P 500 dropped -2.93%. NASDAQ dropped -3.02%. 10-year yield dropped -0.099 to 1.488. |
