Nikkei Plunges After US Midterms, Then Rebounds — Knee-Jerk Reaction or AI Reset?
The Nikkei 225 plunged 4.84% to 60,030.10, its lowest since May, after the US midterms, then rebounded toward 61,944 to cut its loss to about 1.8%. The reversal leaves open whether it was a knee-jerk reaction or an AI reset, with key support at 59,072–59,332 and resistance at 64,831.29.
Dollar Sits Mid-Table, Oil Recovers and US Midterms Loom
Dollar lacked clear direction on Tuesday as investors approached the US midterm elections amid renewed technology-sector weakness, AI financing concerns and Middle East uncertainty. Dollar Index hovered around 101.84, fourth among the eight major currencies on the ActionForex heat map, with NZD and CAD leading gains while Yen underperformed all seven counterparts and Australian Dollar fell after the RBA’s 6–3 hike to 4.85%.
Silver Falls Back Below $50 as AI Risk Concerns Spread — Gold/Silver Ratio Nears 80
Silver is falling more than 3% today, erasing Monday's entire recovery, while oil, Treasury yields and the Dollar offered little explanation. The Gold/Silver ratio surged toward 80 (79.6), and weakness in Nasdaq, Asian tech shares and copper points to broader risk reduction, though the link remains unconfirmed.
AUD/CAD Breaks Key Support After RBA Hike — Is a Bigger Bearish Reversal Beginning?
The RBA raised its cash rate 25bps to 4.85% on a split 6–3 vote, dropped its explicit tightening bias and signalled a pause for assessment, so the Australian Dollar fell despite sharply higher inflation forecasts. AUD/CAD broke structural support at 0.9778, and the next tests are 0.9722 and the 55-week EMA near 0.9660.
