Aussie dollar bounces from 10 year low

Federal Reserve is flexible and aware of risks says Powell

Federal Reserve is flexible and aware of risks says Powell

Shares in Asia fell today and United States stock futures dropped sharply after Apple Inc cut its revenue forecast due in part to weaker sales in China, adding to concerns about the slowing global economy.

SINGAPORE, Jan 3 (Reuters) - The yen soared versus its peers on Thursday, breaking through key technical support levels as heightened global growth risks pushed investors into safe haven-assets in moves exacerbated by thin holiday volumes.

US stock futures pointed to another rough start on Wall Street, with Nasdaq E-minis (NQc1) down 2.7 percent and S&P 500 E-minis (ESc1) off 1.6 percent. All three major USA stock indexes ended down more than 2 percent.

Equities around the globe rallied on Friday while bond yields rose after sharply declining earlier in the week as USA employment data pointed to economic strength and Federal Reserve Chair Jerome Powell said the US central bank would be patient with monetary policy.

The two-year yield, was at 2.4777 per cent compared with a USA close of 2.504 per cent as signs of slowing growth ate away at expectations of further Federal Reserve rate hikes. The market move indicated that investors believe the Federal Reserve's plans to continue tightening monetary policy may be too aggressive given signs of an economic slowdown.

Apple's warning couldn't have come at a worse time for stock market investors given the wipeout in late-2018, when many global indexes posted their worst performances in a decade amid concerns about the global economy and the prospect of further US interest rate hikes. "The two-year yield is telling you a different story now".

Amid the flight to perceived safety, the yield on benchmark 10-year Treasury notes was at 2.6328 percent compared with its USA close of 2.661 percent on Wednesday.

The Australian dollar plunged more than three per cent against the USA dollar and six per cent against the yen as part of a flash crash in the current markets. The Nasdaq composite rose 0.5 per cent to 6,665.94.

Naomi Osaka says US Open win has given her belief
Japan's first grand slam victor had enjoyed a stellar 2018, rising from world No.68 to earn a season-ending top five ranking. And it has all been a significant boost to her confidence ahead of the Australian Open, which starts on January 14.

That "flash crash", which hit at around 9:30 on Thursday morning, was driven by a surging U.S. dollar against other global currencies, according to InvestSmart's chief market strategist.

The Australian dollar was trading as low as 68 USA cents, its lowest level since 2009.

The Aussie dollar has mostly rebounded from a dramatic flash crash that hit many currency pairs but is still trading at its lowest level in three years.

The dollar index .DXY , measuring the greenback against a basket of six other currencies, was last down 0.5 percent.

The Japanese unit also briefly soared about 3.5 percent against the Australian dollar, which is seen as a bellwether for China, and more than four percent on the euro.

Keeping with Friday's risk-on theme, oil prices rose in tandem with equities. Spot gold XAU= last added 0.7 percent to $1,293.24 an ounce.

Copper prices CMCU3 dropped to an 18-month low and ended 1.8 percent lower at $5,736 a tonne. Brent crude, used to price worldwide oils, lost 43 cents to $54.48 per barrel. Benchmark U.S. crude shed 92 cents to $45.62 per barrel in electronic trading on the New York Mercantile Exchange.

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