 Risk aversion continues to dominate the markets, on concern of another wave of coronavirus infects, as the Northern Hemisphere is entering in fall and winter. US stocks closed notably lower after brief initial rebound. Asian markets follow with heavy selling, with major indices in deep red. In the currency markets, commodity currencies are extending decline as weakest ones. Dollar and Yen are the strongest, with the greenback having an upper hand for now. Technically, Australian Dollar is worth a note, with the selloff accelerating on speculation of October RBA cut. In particular, EUR/AUD is now eyeing 1.6586 key near term resistance. Decisive break there would confirm completion of the fall from 1.9799 at 1.6033, and open up more sustainable rebound. AUD/CAD is also eyeing 0.9409 support and break will confirm the start of the correction to rise from 0.8066 to 0.9696. Deeper fall could then be seen to 38.2% retracement at 0.9073. Such developments could further affirm the turn in Aussie's fortune. In Asia, Nikkei is down -0.89%. Hong Kong HSI is down -1.78%. China Shanghai SSE is down -1.46%. Singapore Strait Times is down -1.08%. Japan 10-year JGB yield is up 0.0002 at 0.011. Overnight, DOW dropped -1.92%. S&P 500 dropped -2.37%. NASDAQ dropped -3.02%. 10-year yield rose 0.012 to 0.676. |
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