Technical Analysis

The yen is also gaining some modest ground on the session as such

AUD/USD is now down by over 1% on the day, falling to a low of 0.7077 as we see bids go into the dollar and yen amid the risk-off mood in the market.

The DAX is now extending losses to 3%, with S&P 500 futures also seen down ~1% and Nasdaq futures down ~1.6%. Elsewhere, 10-year Treasury yields have now fallen by 3 bps to 0.695% at the lows for the day as well.

For AUD/USD, price action is breaking through key support around 0.7094-03 and that opens the door to a slippery slope towards the 0.7000 handle potentially next.

Break below the former and the near-term bias switches back to being more bearish, and that could keep sellers poised to try and chase a further push towards 1.2900 again.

Another key pair to watch in the currencies space is AUD/JPY, often regarded as one of the key risk barometers in the market.

As noted earlier, the pair is extending a drop below its 100-day moving average @ 75.45 and is now down by over 1% to 74.45 with little in the way of a drop towards 74.00. That is sort of helping to keep risk pressured to the downside as well on the session.

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