Asia Pacific markets may see a weak start on Wednesday following a bearish Wall Street session on Tuesday. The Australian Dollar is lower against the Greenback as a move lower in US equities is likely fueling some inflows into the US Dollar. The benchmark S&P 500 index broke a multi-day win streak, dropping 0.20% on the day, while the Dow Jones saw a larger drop of 0.60%.
The move lower in US equities doesn’t necessarily reflect a broad sense of risk aversion, given the preceding 7-day run-up. Investors are likely taking some profit, which can be seen as skimming some froth out of the markets. The US Dollar was 0.30% higher at the New York closing bell via the DXY index. Treasury yields were lower across the curve as investors moved into US government bonds.
