The initial news was the revenue guidance slash from Apple:

(Of course before the catalyst you need background... slowing growth globally and in China has been obvious for months now)

The initial big FX move was in the Turkish lira … I managed to squeeze out a quick post on it just prior to the broader move:

The Turkish lira /yen cross saw a surge in liquidation sellers, it had been a popular trade. Liquidity in it is poor, at the best of times, and the move today came at the worst of times (the thinnest liquidity time of the 24 hour forex cycle). Its a small door when trying to get out, and when everyone rushes at it at once (i.e. a cluster of selling) moves are exacerbated and extended.

The flow on was into other yen crosses, very notably AUD/JPY (but that's far from the only one that collapsed.

USD/JPY also had a big target painted on it around 105, Japanese exporters had USD/JPY put options with knock outs if 105 were hit.

And so it was.

Ugh.

What a cascade.

Here is the one minute candle chart opf AUD/JPY if you need a picture picture of how this unfolded:

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More on the 'worst time of day for liquidity'.

I explained this earlier (I do so over and over again), but in a nutshell:

  • New York markets had closed
  • The only interbank FX markets open were New Zealand and Australia
  • Japanese markets were not yet open (and further, for today they will not be open at all, its a holiday)

More from earlier today (read from the bottom up):