By Chris Becker
US stocks led the selloff in risk markets overnight as Treasury yields surged again with 2 years back to their GFC highs, about to approach 3% themselves. This has sent USD sensitive majors and other undollars down with antipodean currencies the most effected as the Aussie and Kiwi dollar makes a new low. Leading up to tonight’s US NFP print, this increased volatility is a concern, with a stonking print possibly pushing the risk edifice over.
Recapping Asia’s session yesterday where the Shanghai Composite was closed again, so let’s look at the Hang Seng Index which closed nearly 2%lower again to 26565 points, now in full reversal after previously being unable to climb above overhead ATR resistance. This almost takes it back to the previous low, so there maybe more downside potential here:
