Risk sentiment took a turn for the worse overnight. After US stock indices fell sharply yesterday, the major Asian stock markets also declined, with the Nikkei falling as much as 4.50 % on the day.
The focus is again on oil as Brent fell below $30. WTI is doing slightly better, as it is still holding above $30, but it remains under pressure overall. The decline in oil prices pushed USD/CAD to fresh multi-year highs in Asia. The pair reached a high of 1.4382 and there seems to be little tech resistance until 1.45.
Meanwhile, USD/JPY had a sharp reversal. After reaching a high of 118.40 in yesterday's NY session, the pair came under pressure in the early Asian session and eventually fell to a low of 117.30. Support is now seen at 117.00 and 116.70.
Australian employment data beat expectations and the unemployment rate remained steady at 5.8 %, but that did not help the Aussie Dollar as the negative sentiment in equity markets weighed on the risk-on currencies as well. AUD/USD fell from 0.6960 to 0.6920 and key support is now seen at 0.6905, the 2015 low.
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