Risk aversion is back....

Markets opened jittery at the start of this week. It seem like the New Year sentiment is fading and investors are coming back to Earth. Overnight Dow Jones lost about 1.5%. Reporting season is kicking in and the numbers ain't gonna look pretty. Tonight Ben Bernanke will give his speech and traders will be watching every movement of his lip. Whenever the FED chairman speaks, markets will display significant movements. If he foresees continued challenging conditions ahead, market will respond quickly on a flight to safety. This means risky assets will be liquidated. In the foreign exchange context, this means that high yielders such as Australian and New Zealand dollars will find difficulty holding on the gains in recent days.