By Chris Becker
King Dollar has returned! The new Fed Chair Jerome Powell sent a hawkish tone throughout risk markets last night with his first testimony to Congress, with his intent on more interest rates this calendar year saw both Treasury yields and the USD higher. The taking away of the punchbowl put a ripple through risk markets with US stocks falling the most in two weeks, and commodities also tumbling. Its not going to be a nice day here in Asia for the longs..
Recapping action in Asia yesterday where the Shanghai Composite lost over 1% to be back below 3300 points, taking back most of its previous gains. The next obvious level is former support, now key resistance at 3400 points, but as I said yesterday, momentum is not yet positive enough to call this a new trend:
