AUD/USD threatens a firm break below the 100-hour moving average
Stocks are falling further on the session, with European equities losing further ground as the DAX is now down by 1% on the day. Treasuries are staying bid, with 10-year yields slipping by more than 5 bps to just under 0.70% currently.
In turn, this is putting further pressure on risk trades with the aussie falling to a low of 0.6342 against the dollar while the kiwi has eased to 0.6024 as well.
The yen and dollar remains the two standout performers, as we see the pound and euro also ease towards session lows to get the European morning started.
I would argue that a key spot to watch today amid the risk aversion is oil prices. Oil continues to flirt with a potential break below $20 (yup, again) and so far things are holding.
We've seen this story unfold over the last few weeks now but if we do see a firm break below the key level materialise, it may yet set off another wave of risk aversion in the market.
