The US markets were sold off deeply overnight after after poor ISM manufacturing data and renewed tariff threats. Dollar also suffered deep selling pressure, together with Canadian. Though, there was no clear fund flows into the Japanese Yen, as risk aversion was countered by surge in major treasury yields. On the other hand, Australian and New Zealand Dollars are the stronger ones instead.

After yesterday’s strong selloff, focus is now on weakness in the greenback. AUD/USD’s break of 0.6834 resistance now suggests short term bottoming at 0.6754. Further rise could be seen back to 0.6929 resistance. EUR/USD is now eyeing 1.1097 resistance. Break will indicate completion of pull back from 1.1179 and bring further rise to this resistance. USD/CHF is extending the consolidation form 1.0027 with another fall but we’d expect strong support around 0.9868 to contain downside. However, firm break there would add to the case of overall bearishness in Dollar.

In Asia, Nikkei is down -0.66%. Hong Kong HSI is down -0.15%. China Shanghai SSE is down -0.11%. Singapore Strait Times is down -0.40%. Japan 10-year JGB yield is up 0.0226 at -0.019, heading back to 0%. Overnight, DOW dropped -0.96%. S&P 500 dropped -0.86%. NASDAQ dropped -1.12%. 10-year yield rose 0.060 to 1.836, back above 1.8%.