S&P 500 down 2%
The break of last week's lows and the 50-day moving average led to a wave of selling in equities. The S&P 500 is now down 66 points or 2%. The Dow is down 658 points.
Early on, AUD/USD and other commodity currencies shook off the weakness in stocks but it's finally spilled over. AUD/USD is down 30 pips now to 0.7109. That's still a relatively tame move as the dollar struggles to get in a strong bid, in part because much of the risk in the next few weeks is US-centric.
Zooming out, there's a wedge forming on the AUD/USD daily chart that's worth following closely in the month ahead. I can offer a few reasons for a break in either direction but at this point, I think you listen to what the market says and take what's given.
