European indices are posting heavy losses on the session now, with the DAX and UK FTSE both down by 3% as the risk-off mood picks up further. Elsewhere, US futures are also being battered with S&P 500 futures now down by 2%.
This is continuing to keep the yen underpinned with USD/JPY having met its first test of the 104.00 handle, before trading around 104.15 currently.
Meanwhile, the dollar is continuing to stay bid as well with EUR/USD now slumping to just below 1.1800 and commodity currencies also weakening against the greenback.
AUD/USD has also broken below its own key hourly moving averages @ 0.7291-06 to trade at the lows of 0.7275 at the moment. The 200-week moving average for the pair stands @ 0.7247 so that will be a key level to watch in trading this week as well.