Matt Simpson

With futures traders continuing to cover longs, further losses cannot be ruled out without a fresh fundamental catalyst. But given crude oil's 11% decline and plethora of support levels above $70, a technically-driven bounce is not a crazy idea.

Given that commodity currencies such as AUD/NZD and NZD/USD have succumbed to USD strength for the best part of four months, the idea of a correction may not be overdue. Add into the mix bullish divergences on net-short exposure and false break of key lows, perhaps one is already underway.

With gold making hard work of record highs while copper perks up from its cycle lows, I'm looking for the two to converge over the near term.

You’ll be forgiven for not realising that economic data was released on Monday, amid the influx of trade war headlines. But if US growth estimates and manufacturing are anything to go by, we’re in for another hot ISM services print later this week.

Some bullish fingers have likely been burned at this week's open, given the relatively bullish positioning on S&P 500 futures alongside short bets against the VIX rising to a 6-month high last week.

It has been another turbulent start to the week for Wal Street and ASX 200 futures, as traders react to Trump's tariffs.