The aussie is among the big losers so far today as commodity currencies are seeing a general retreat, with risk aversion kicking into gear in European morning trade.
The latest downdraft comes as Treasury yields sink further and that is creating fresh concerns in the market about what that represents. There are no easy answers:
And as risk retreats amid the uncertainty, the aussie is seeing a fresh fall to its lowest levels this year, down to 0.7431 at the lows today.
The drop now threatens a break below the 21 December low @ 0.7462 and puts the 0.7400 handle as well as the 61.8 retracement level @ 0.7379 in sight.