The weak US retail sales number has added to the negative tone in markets.
The main beneficiary is the yen, which is at session highs across the board. With the latest move, AUD/JPY is now down 1.2% — or 99 pips — and has cut through Monday’s low to the worst level since December 21.
AUD/JPY has fallen through the 100-day moving average for the first time in 2022.
This pair is a good proxy for overall risk sentiment. Several yen crosses have hit new weekly lows and they look vulnerable as the market re-focuses on omicron, particularly in China.
With earnings season starting now, I fear we will see waves of corporate warnings about the hit from the virus and/or soft demand in Q1.
S&P 500 futures are down 40 points.
This article was originally published by Forexlive.com. Read the original article here.