June 11, 2020 — 2 min read
The AUDUSD opens at 0.6844 and the NZDUSD opens at 0.6412.
Risk is well and truly off, with the AUD and NZD being sold across the board. Stocks are off about 6%, with the NASDAQ backing away from its all time high. The most interesting thing is that it has happened on the back of not much news at all. The transition between panic, euphoria and back again is getting quicker and quicker.
The main worry beyond the fear of missing out on profit taking, was a slight increase in Covid-19 cases in some of the warmer spots, like Florida, Texas and even Saudi Arabia. The hope was that the virus would struggle to spread in warmer climates than colder climates. We may see that assumption proven wrong and as a result, confidence that the onset of Summer may be the panacea to the US' problems is starting to wane.
Global equity markets are mixed - Dow -6.9%, S&P 500 -5.8%, FTSE -4.0%, DAX -4.5%, CAC -4.7%, Nikkei -2.8%, Shanghai -0.8%
Gold prices are off -0.6% to USD$1,726 an ounce, while WTI Crude Oil prices are off -8.3% to US$35.8 per barrel.
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