The NY session saw overnight risk aversion continue to play out across the board as worries about the financial sector permeated the marketplace. US stocks were pummeled and the S&P sank -4.3% to just above the 100-day moving average at 830 now. Gold rallied more than $16 on the day and was near 885 at the NY close. The flight to safety left the US dollar better bid on the follow.
EUR/USD continued to lose ground and fell -50 pips into the 1.2920 area. Look for some short-term support by 1.2880 and 1.2830 now. With plenty of top-tier eurozone data due up this week, we expect the weakness in EUR to continue to play out. EUR/JPY plunged -150 pips and was sitting by 126.50 while USD/JPY fell a less aggressive -80 pips by 97.90.
The commodity currencies were weaker still with AUD/USD shedding -90 pips to 0.6970 while USD/CAD was bid +85 points towards 1.2390 on the back of the more than -9% decline in oil prices. Continued declines in stocks and another positive oil inventory report mid-week should see AUD and CAD with an overall heavy tone.
Upcoming Economic Data Releases (Asia Session) prior expected
- 4/20 22:45 GMT NZ Visitor Arrivals MAR - - 2.90%
- 4/20 23:30 GMT US Fed's Kohn Speaks on Economic Outlook
- 4/21 1:30 GMT AU Reserve Bank's Board April Minutes
- 4/21 3:30 GMT AU RBA Governor Stevens Speaks in Adelaide
