A double whammy of Tokyo Fix selling, Fonterra news impact, a downgrade of the Japanese economic outlook by the government or more recently Australia new home sales falling (M/M) -5.6% in July vs +2.8% in June, have all contributed to exacerbate losses on risky assets.
At present time, EUR/USD has broken into fresh weekly lows, just below Friday's 1.2478 bottom. Amid lack of news to lead the pair and past London session closed, the German Ifo earlier on Monday provided no support for the shared currency.
NZD/USD, meanwhile, is pressured from around 0.8085 to 0.8065 after news broke that Fonterra is to cut its forecast payout due to the hefty levels the Kiwi trades at. According to Brent Hansen, IFR Markets analyst, "0.8050 nearest tech support, then rising trendline/lower BBand at 0.8031."
Meanwhile, AUD/USD is also under pressure following weak domestic housing data mentioned above, reminding the market construction is a weakening sector of the economy. AUD has pressed against fresh session lows below 1.0350, indicating higher odds to target next demand level at intra-day traffic noise around 1.0340/20 ahead of round 1.03.
USD/JPY has also been feeling the pain, rejected off yesterday's high at 78.80 to currently find tech support at 78.50, session lows and where an ascending trendline coming from post Fed minutes low - 78.30 - is crossing. A break lower exposes 78.30.
On a side note, it has been quite noticeable the sell-off in the British Pound, currently topping the losers board along with the New Zealand Dollar. Meanwhile, futures are leaking moderately lower, with AUDJPY carry-unwinding.