The rout in HK, China starts to produce negative spillovers
The aussie and kiwi are dragged to fresh lows on the day as we see the Chinese yuan also come under pressure, falling by 0.5% and weakening past 6.52 against the dollar at the tail-end of Asian trading today.
The Hang Seng is replicating yesterday’s sharp fall with another 4.5% drop currently.
In turn, we are seeing a flight to safety as Treasuries are bid, with 10-year yields falling quickly by 3 bps to 1.245% on the day.
In FX, that is seeing NZD/USD fall to a low of 0.6955 as sellers seize near-term control:
In the bigger picture though, the pair is still keeping a little pressured lower below 0.7000 with trendline resistance still holding for the time being: