With the exception of the Yen, the USD continues to extend gains in the New York session, benefitting from the sharp pullback in equity prices and elevated risk aversion. The Australian Dollar continues to be the across the board underperformer on the day now down nearly 3% against the greenback, with the severe drop in oil prices also impacting the higher yielding commodity currency. This despite the relative gains in gold prices which track nearly 2% higher.
All safe haven and lower yielding FX have benefited greatly thus far, with the Yen crosses and Eur/Chf selling off hard in New York as a result of the market uncertainty. Contributing to the risk aversion has been the latest leading indicator data out this morning which has come in weaker than expected.
The Euro has been well offered on the day but is nowhere near the weakest currency, with comments from ECB Nowotny perhaps propping the currency somewhat after the official said that he would only support a small rate cut.
Earlier rumors that the US bank stress tests were completed have been denied with the much anticipated results not to be disclosed until early May. This is a big week on the US earnings calendar and investors will be focused on the corporate results all week to better gauge the health of the US economy. (DailyFX)