Risk off flows as stocks sliding in pre-market trading
The US stocks are hitting the skids after the Nvidia news. The worry is China's economy may be faltering from the tariffs, but they can quietly hurt US companies as well. Caterpillar, Intel, and now Nvidia are recent examples of companies blaming China for weaker guidance. They can turn off the spigot whether that be from a weaker economy or changing gaming rules internally (which lowers demand for chips). This week China and US representatives meet. No one is winning.
Technically, the AUDUSDs move lower has just taken the price back below the 100 day MA at 0.71269 (see blue chart below). The 38.2% of the move up from the Friday low comes in at 0.7154. That level and the 200 hour MA at 0.71508 are downside targets now
