Earlier this week it was all about Treasuries.
The whims of the bond market were seemingly steering sentiment elsewhere. Today though US 10-year yields are up just 1.6 basis points in a back-and-forth trade but risk aversion is high and worsening.
The S&P 500 is down 67 points, breaking below the range of the past two weeks and slumping into the close.
That has weighed on AUD/USD as it falls below 0.7100 for the first time since May 26.
The chart is troubling as the pair stalled out at 0.7283 which is near:
- The 50% retracement of the March-May drop
- The early-May bounce, setting up a double top
Given what we're seeing in stocks and given the growing fears about global growth, these aren't technical signals to ignore.
