 Risk aversion intensifies in Asian session again. In particular, Hong Kong stocks lead the decline on news of arrest of Chinese tech giant Huawei's CFO Meng Wanzhou. The arrest is reported to be in relation to Huawei violating US sanctions by shipping US originated products to Iran and some other countries. Canada also confirmed that Meng is facing extradition to the US. The arrest also prompted concerns over Chinese retaliation on US executives. At the time of writing, Hong Kong HSI is down -2.62% or -702 pts. Nikkei is down -2.13% or -468 pts. China Shanghai SSE is down -1.28%. Singapore Strait Times is down -1.13%. 10 year JGB yield is down another -0.25 at 0.045. We'd like to point out again that 10 year JGB yield hit as high as 0.166 just back in early October. Considering the slump in US and German yields, the strong bond market rebound and stock market decline, it's clear that funds are seeking safety in rather drastic manner. In the currency markets, Australian Dollar remains the weakest one for today, followed by New Zealand Dollar. Canadian Dollar isn't much better as the third weakest. The Loonie was sold off sharply after BoC expressed its concern on "oil price shock" in the statement overnight. For now, Yen is the strongest one for today, followed by Swiss Franc and then Dollar. Technically, USD/CAD is likely in medium term up trend resumption. We'll see if it can sustain above 1.3385 key resistance to confirm. CAD/JPY's firm break of 84.61 support already confirm resumption of fall from 89.22. Outlook in Australian Dollar is starting to look bad. AUD/USD is heading back to 0.7199 support and EUR/AUD is eyeing 1.5781 resistance. Break of these levels will argue that recent rebound is Aussie is finished and turn outlook bearish again. Meanwhile, EUR/USD, USD/CHF, GBP/USD and EUR/GBP are trading in familiar range. These pairs are still awaiting breakout. | 
