Year 2016 off to a volatile start, Yen dominates on ‘risk-off’

By FXStreet FXStreet (Bali) – The year 2016 is off to a volatile start, with Asian equity markets under pressure on very decent volumes despite being the first trading day of 2016.

The Japanese Nikkei 225 is down by more than 2.5% by mid-morning at 18,540.00, the SP500 futures are down by 0.44%, the Shenzen index has seen most notable losses in the tune of 5%, while in Australia, the AXJO is down by 0.33% at 5,277.00.

The Japanese Yen is the undisputable winner in Asia, as risk-averse conditions settle in, following a disappointing Caixin China PMI Manufacturing read for the month of December.

AUD/USD has been hammered from 0.73 round number all the way towards 0.7210/15 lows, with no signs of bottoming just yet. Meanwhile, USD/JPY has taken a massive beating off 120.45 highs, where liquidity was found, before breaking through the 120.00 level and find a new 2 1/2 month low of 119.68.
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Source:: FX Street