EUR/USD, AUD/USD, USD/JPY Flows: Kospi hammered

Kospi hammered overnight, dumping over 10%, continuing its biggest plunge this month since the Asia crisis as both the speculative leverage bubble there blows and as China competition and investment cost worries continue. The change in current chip mood also reflected in the negative reaction to Nvidia’s latest circular-funding-like announcement on $250bn finance guarantees for OpenAI’s data centre. The Nasdaq is down around 1.2% and the S&P future still cushioned by rotation off around 0.3%. VIX has snuck higher though it is still even now just below 20, above which it would at least start to come on the radar. Big US earnings later in the week from further Mag7 names will also be a focal point.

FX though not really sure what to do with it, other than AUD being a touch weighed with precious metals also softer today on the action, AUD/USD though off only modestly and only rolling back from the lift to 0.7. It’s tested 0.6860 local support below which it could though be weighed back towards the 0.69~ figure it came from.

With the Nikkei off another chunk also today, in theory it’s also worth watching USD/JPY for any month end adjustment selling after a month of significant underperformance, though this can be hit and miss and the pair is also decidedly unresponsive and flat this morning too.

The market is very much as noted in the daily seemingly determinedly stuck waiting for the Fed and reluctant to move far before seeing the outcome there.