 US stocks tumbled overnight, extending recent decline, as FOMC raised interest rate and the overall announce was less dovish than expected. Risk aversion also spread to Asian session. Commodity currencies are generally pressured as a result. New Zealand Dollar additionally weighed down by poor GDP while Aussie is soft on mixed job data. While Dollar rebounded, it remains soft against European majors and Yen. Euro continues to be supported by Italy-EU budget deal. But Yen is even stronger on risk aversion. Technically, AUD/USD is on track to retest 0.7020 low. EUR/AUD, after breaking 1.5984 support turned resistance, is also on track to retest 1.6357 high. USD/CAD is also in progress to 1.3685 fibonacci level. Yen will be a focus today as USD/JPY might finally sustain below 112.23 support with some conviction. Similarly, EUR/JPY could finally break through 127.61 support decisively. GBP/JPY might also have a tat on 141.17 support. EUR/USD, GBP/USD and USD/CHF, EUR/GBP are staying in range, awaiting breakout. In other markets, DOW closed down -1.49% at 23323.66, S&P 500 dropped -1.54% while NASDAQ dropped -2.17%. US treasury yields tumbled sharply, especially at the long end. 10-year yield dropped -0.047 to 2.778. 30-year yield dropped -0.064 to 3.015, and it's now risking 3% handle. More importantly, yield curve flattened further and it's now inverted from 1-year (2.648) to 5-year (2.622). |
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