FXstreet.com (Córdoba) - A rise in risk aversion sent stocks lower worldwide. The Dow Jones fell for the fourth consecutive session and ended at 9,763. Commodities also fell and continued to pull back from the highs of the year. The Yen and the Dollar rose across the board.
Equities fell sharply everywhere with main stocks indexes posting losses from 1.50% to 2.50%. Concerns about the economic recovery worried investors. In the U.S. Durable Goods Orders rose but less than expected, later a report on New Home Sales showed a surprising decline of 3.6% while analyst where expecting an increase of 1.0%.
Crude oil fell from $79 a barrel to $77.20. Gold continues to moved away form the highs of the year and fell to test levels below $1,030 an ounce.
Greenback rose across the board and continued to move away from 14-month lows. The Dollar Index is at the highest level in two weeks. EUR/USD fell momentarily below 1.4700 and ended on Wednesday with losses for the fourth consecutive session and accumulates a decline of more than 300 pips.
The Forex.com Research Desk affirms: The flight to safety saw both the USD and JPY come back better bid. EUR/USD sank from a 1.4815 session high to a 1.4695/90 low ahead of the close. Stops likely lurk into the 1.4680/50 area now and we would look for overnight support into that zone.
The Yen rose sharply across the board. USD/JPY fell below 91.00 to 90.55 posting the lowest price in a week. The pair has fallen more than 150 pips in the last two days.
Currencies tied to commodities collapsed across the board posting the biggest daily losses in months. AUD/USD fell from 0.9100 to 0.8960, posting a fresh 3-week low. NZD/USD tumbled from 0.7440 to levels below 0.7200. The pair trades at the lowest level since the beginning of October and extended losses after the Reserve Bank of New Zealand decided to leave the interest rate unchanged. USD/CAD rallied and jumped from 1.0630 to test levels above 1.0800. Against the Yen, the slid of currencies tied to commodities was even bigger.