 Dollar is still trading as the strongest for today even though the rebound looks a bit unconvincing. In particular, the greenback is effectively just range bound against against European majors. And in fact, it's taking turn to be the strongest with Swiss Franc. Meanwhile, Australian Dollar remains the weakest one, followed by New Zealand Dollar. The Aussie is weighed down by its own political turmoil. There is a high chance Prime Minister Malcolm Turnbull would be ousted as soon as tomorrow. And it's uncertain who of Treasurer Scott Morrison, former Home Affairs Minister Peter Dutton, or Foreign Affairs Minister Julie Bishop would get enough vote for party leadership and the top job. Released from US, initial jobless claims dropped -2k to 210k in the week ended August 18, below expectation of 215k. Four-week moving average of initial claims dropped -1.75k to 213.75k. Continuing claims dropped -2k to 1.727m in the week ended August 11. Four-week moving average of continuing claims dropped -5k to 1.7355m. The markets paid little attention to the data. Focuses are on the rising impeachment threat for Trump. And Trump himself even threatened the Americans that if he's impeached, "the market would crash" and "everybody would be very poor". In other markets, European indices are trading nearly flat today, "flipping" between gains and losses in very tight range. China's Shanghai SSE rose 0.37% to close at 2724.62 as new rounds of tariffs from US and China takes effect. Hong Kong HSI dropped -0.49%. Nikkei rose 0.22% and Singapore Strait Times rose 1.56%. Gold breached 1187.40 minor support earlier today but refuses to give in so far. Technically, weakness of Australian Dollar will remain a main theme in the US session. EUR/AUD just took out 1.5888 resistance to resume the rally from June's low at 1.5271. It's heading to 1.6 handle and will very likely challenge 1.6189 resistance in near term. Meanwhile, 1.1493 minor support and EUR/USD and 1.2811 minor support in GBP/USD will be watched to confirm if Dollar is really completing this week's pull back. | 
No comments:
Post a Comment