6 things Australian traders will be talking about this morning

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Good morning.

To the scoreboard:

Dow: 24,345.75 -1175.21 (-4.60%)
S&P 500: 2,648.94 -113.19 (-4.10%)
AUD/USD: 0.7892 -0.0034 (-0.43%)
ASX200 SPI futures (March contracts): 5,822 (-139

1. The US stock rout continued as the S&P500 crashed by more than 4% — the biggest one-day move since 2011. “Buy the dip” has been a popular refrain in recent years, but Wells Fargo analysts aren’t so sure this time. Here’s the overnight move in the VIX index:

2. Bonds find buyers: While stocks were sold heavily for the second straight session, bond yields edged lower amid demand for save haven assets. Benchmark US 10-year bond yields are at 2.76% — down around 8 basis points from the previous day’s multi-year high.

3. The Aussie dollar is under pressure ahead of a big day of data, as the US dollar pushed higher against most major currencies — with the exception of the safe-haven yen. While the US dollar has climbed off its lows, the recent weakness in the greenback is adding fuel to investors’ biggest worry.

4. A big day of data starts with December retail sales at 11:30am AEDT — which will give an update on the strength of both the Aussie consumer and the retail industry over the key Christmas trading period. Then there’s the RBA’s first interest rate announcement of the year at 2:30pm AEDT, where the central bank will give an update on its policy outtlook. David Scutt’s 10-second guide is here.

5. Oil prices dipped again and have now fallen more than 5% from their January 25 high, while gold held steady overnight amid support for save-haven assets. But amid the global stock selloff and rising volatility, iron ore prices ripped higher for the second straight session.

6. Bitcoin crashed below $US7,000 for the first time since November 15 before a small rally this morning, as the global regulatory crackdown continues to weigh on prices. UK banks are following their US counterparts in banning crypto transactions on credit cards, while the SCMP reported China is clamping down on offshore virtual currency trading.

Enjoy your day.

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