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For the 24 hours to 23:00 GMT, the USD declined 0.31% against the CHF and closed at 0.9890.

In the Asian session, at GMT0300, the pair is trading at 0.9863, with the USD trading 0.27% lower against the CHF from yesterday’s close.

The pair is expected to find support at 0.9835, and a fall through could take it to the next support level of 0.9808. The pair is expected to find its first resistance at 0.9912, and a rise through could take it to the next resistance level of 0.9962.

With no macroeconomic releases in Switzerland today, investors would look forward to global macroeconomic releases for further directions.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.81% against the CAD and closed at 1.3048.

On the data front, Canada's building permits rebounded 0.4% on a monthly basis in August, undershooting market consensus for an advance of 0.5%. Building permits had recorded a revised drop of 1.5% in the previous month.

In the Asian session, at GMT0300, the pair is trading at 1.3050, with the USD trading slightly higher against the CAD from yesterday's close.

The pair is expected to find support at 1.2962, and a fall through could take it to the next support level of 1.2873. The pair is expected to find its first resistance at 1.3104, and a rise through could take it to the next resistance level of 1.3157.

Trading trend in the Loonie today is expected to be determined by Canada's new housing price index for August, slated to release later in the day.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the AUD declined 0.55% against the USD and closed at 0.7067.

LME Copper prices rose 1.2% or $75.0/MT to $6294.0/MT. Aluminium prices declined 0.1% or $2.5/MT to $2029.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7073, with the AUD trading 0.08% higher against the USD from yesterday's close.

Overnight data revealed that Australia's consumer inflation expectations remained steady at a level of 4.0% in October.

The pair is expected to find support at 0.7034, and a fall through could take it to the next support level of 0.6996. The pair is expected to find its first resistance at 0.7121, and a rise through could take it to the next resistance level of 0.7170.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, Gold rose 0.44% against the USD and closed at USD1197.90 per ounce, amid weakness in the US dollar.

In the Asian session, at GMT0300, the pair is trading at 1196.30, with gold trading 0.13% lower against the USD from yesterday’s close.

The pair is expected to find support at 1190.33, and a fall through could take it to the next support level of 1184.37. The pair is expected to find its first resistance at 1200.43, and a rise through could take it to the next resistance level of 1204.57.

The yellow metal is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, Silver declined 0.52% against the USD and closed at USD14.35 per ounce.

In the Asian session, at GMT0300, the pair is trading at 14.32, with silver trading 0.24% lower against the USD from yesterday’s close.

The pair is expected to find support at 14.23, and a fall through could take it to the next support level of 14.14. The pair is expected to find its first resistance at 14.43, and a rise through could take it to the next resistance level of 14.54.

The white metal is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

For the 24 hours to 23:00 GMT, Crude Oil declined 2.72% against the USD and closed at USD72.71 per barrel after the American Petroleum Institute (API) reported a sharp increase in the US crude oil inventories by 9.7 million barrels to 413.0 million barrels in the week ended 05 October.

In the Asian session, at GMT0300, the pair is trading at 71.99, with oil trading 0.99% lower against the USD from yesterday's close.

The pair is expected to find support at 70.91, and a fall through could take it to the next support level of 69.82. The pair is expected to find its first resistance at 74.08, and a rise through could take it to the next resistance level of 76.16.

Crude oil is trading below its 20 Hr and 50 Hr moving averages.

Daily Pivots: (S1) 111.92; (P) 112.60; (R1) 112.95; More...

USD/JPY's fall from 114.54 extends to as low as 111.96 so far today. There is no sign of bottoming yet and intraday bias remains on the downside. Current downside acceleration argues that USD/JPY is correcting whole up trend from 104.62, after rejection by 114.73 resistance. Further fall could be seen to 38.2% retracement of 104.62 to 114.54 at 110.75. We'll look for bottoming signal above 109.76 key support. On the upside, break of 113.28 minor resistance is needed to indicate completion of the decline. Otherwise, near term outlook stays mildly bearish even in case of recovery.

In the bigger picture, corrective fall from 118.65 (2016 high) should have completed with three waves down to 104.62. Decisive break of 114.73 resistance will likely resume whole rally from 98.97 (2016 low) to 100% projection of 98.97 to 118.65 from 104.62 at 124.30, which is reasonably close to 125.85 (2015 high). This will stay as the preferred case as long as 109.76 support holds. However, decisive break of 109.76 will dampen this bullish view and turns outlook mixed again.

Asian markets are in crisis mode as dragged down by the stock market crash in the US over night. At the time of writing, Nikkei is down -970 pts or -4.13%. Singapore Strait Times is down -89.59 pts or -2.86%. Hong Kong HSI is down -1010 pts or -3.86%. And, China Shanghai SSE is down -4.61% at 2600. Key support level at 2638 (2016 low) is taken out and 2600 handle looks vulnerable.

Overnight, DOW dropped -831.83 pts or 3.15% to 25598.74. S&P 500 lost -3.29% and NASDAQ fell -4.08%. Treasury yields were strong with 10 year yield up 0.017 at 3.225. The biggest test today is US consumer inflation. Both headline and core CPI are expected to accelerate in September. Any upside surprise would further affirm Fed's rate path and could prompt deeper selloff in stocks.

In the currency markets, Dollar is trading as the weakest one in Asian session and gets not support from surging yield. Trump's unjustified scapegoating attack on Fed could be a reason for the weakness. But it should be reminded that Fed is doing a good job in achieving its dual mandate in both employment and inflation. If Fed's rate path is being seen as too fast, it's because of the pro-cyclical fiscal stimulus, the tax cuts, that was launched earlier this year. The fiscal stimulus also set up the a trap on investors by giving unnecessary boost to the stock markets for this year's upleg. So who's to blame?

For today, Yen also pared back some gains and is trading as the second weakest. On the other hand, New Zealand Dollar is the strongest one, followed by Swiss Franc and then Euro.

The weekly picture is actually more representative on what's happened. Yen is the strongest one for the week, followed by Sterling. Canadian Dollar is the weakest one, followed by Dollar and then Australian Dollar.

DOW already in medium term reversal? 24531 is next test

DOW's strong break of 55 day EMA, coupled with bearish divergence condition in daily MACD, is significantly raising the chance that it's now in medium term reversal. From price structure point of view, there was also a beautiful wave four triangle from 26616.71 to 23997.21, followed by a short impulse wave five from 23997.21 to 26951.81. Unless DOW could get back above 55 day EMA quickly, otherwise, risk is now heavily on the downside.

So how far could DOW fall to? If we take a less bearish view, it's just correcting the uptrend from 2016 low at 15450.56 to 26951.81. Then, first support is 55 week EMA (now at 24531.54). Defending this support will keep the medium term intact and invalidate the above mentioned medium term reversal case. However, firm break there should at least send DOW back to 38.2% retracement of 15450.56 to 26951.81 at 22558.33 before bottoming.

Trump scapegoats Fed as going crazy, wild and loco

Trump launched another scapegoating attack on Fed and said, referring to the over 800 pts fall in DOW, "I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy." He added "actually, it's a correction that we've been waiting for for a long time, but I really disagree with what the Fed is doing."

Later he doubled down and said in a telephone interview that "the problem I have is with the Fed. The Fed is going wild. I mean, I don't know what their problem is that they are raising interest rates and it's ridiculous." "The problem [causing the market drop] in my opinion is Treasury and the Fed. The Fed is going loco and there's no reason for them to do it. I'm not happy about it."

IMF Lagarde urged to de-escalate trade wars for the innocent bystanders

In a conference in Indonesia, IMF Managing Director Christine Lagarde urged countries to "de-escalate" trade wars was they could hurt "innocent bystanders". She said, "We certainly hope we don't move in either direction of a trade war or a currency war. It will be detrimental on both accounts for all participants... and there would also be lots of innocent bystanders."

Regarding recent depreciation of the Chinese Yuan, Lagarde said it's mainly driven by the strengthen of Dollar. And she noted that Yuan has not depreciated as much against a basket of currencies. She acknowledged that "we're seeing more and more countries, China included, let their currencies fluctuate." At the same time she also supported "the move of China toward (currency) flexibility" and urged China to go down that path."

On the data front

UKK RICS house price balance dropped to -2 in September. Japan domestic corporate goods price index rose 3.0% yoy in September. Australia consumer inflation expectation was unchanged at 4.0% in October.

ECB monetary policy meeting accounts will be the main focus in European session. US CPI will catch all attention later in the day. Headline CPI is expected to rise to 2.8% yoy in September and core CPI to rise to 2.3% yoy. That would reaffirm Fed's rate path and any upside surprise could prompt even deeper selloff in stocks. US will also release jobless claims. Canada will release new housing price index.

USD/JPY Daily Outlook

Daily Pivots: (S1) 111.92; (P) 112.60; (R1) 112.95; More...

USD/JPY's fall from 114.54 extends to as low as 111.96 so far today. There is no sign of bottoming yet and intraday bias remains on the downside. Current downside acceleration argues that USD/JPY is correcting whole up trend from 104.62, after rejection by 114.73 resistance. Further fall could be seen to 38.2% retracement of 104.62 to 114.54 at 110.75. We'll look for bottoming signal above 109.76 key support. On the upside, break of 113.28 minor resistance is needed to indicate completion of the decline. Otherwise, near term outlook stays mildly bearish even in case of recovery.

In the bigger picture, corrective fall from 118.65 (2016 high) should have completed with three waves down to 104.62. Decisive break of 114.73 resistance will likely resume whole rally from 98.97 (2016 low) to 100% projection of 98.97 to 118.65 from 104.62 at 124.30, which is reasonably close to 125.85 (2015 high). This will stay as the preferred case as long as 109.76 support holds. However, decisive break of 109.76 will dampen this bullish view and turns outlook mixed again.

Economic Indicators Update

In a conference in Indonesia, IMF Managing Director Christine Lagarde urged countries to "de-escalate" trade wars was they could hurt "innocent bystanders". She said, "We certainly hope we don't move in either direction of a trade war or a currency war. It will be detrimental on both accounts for all participants... and there would also be lots of innocent bystanders."

Regarding recent depreciation of the Chinese Yuan, Lagarde said it's mainly driven by the strengthen of Dollar. And she noted that Yuan has not depreciated as much against a basket of currencies. She acknowledged that "we're seeing more and more countries, China included, let their currencies fluctuate." At the same time she also supported "the move of China toward (currency) flexibility" and urged China to go down that path."

Here's an update on AUD/USD short (sold at 0.7100), last updated here.

The trade is so far doing ok as risk aversion realized. But we've overestimated the strength in Dollar. Still, the price actions from 0.7040 to 0.7130 are corrective looking, which reinforces our bearish view. For now, we'll keep the stop at 0.7185, slightly above 50% retracement of 0.7314 to 0.7040 at 0.7178. That's because, theoretically speaking, consolidation pattern from 0.7040 could extend with another leg through 0.7130, even though it's unlikely. Upon decisive break of 0.7040, we'll lower the stop after AUD/USD settles below this level.

Our view is unchanged that medium term fall from 0.8135 could be resuming long term down trend. Hence, we have not decided whether to exit at around 0.6826 low yet. We'll monitor downside momentum in both 4H and daily chart to decide at a later stage.