 Australian Dollar rises broadly today as boosted by strong rally in Chinese stocks. The Shanghai SSE composite is pushed through 2800 psychological level on news that MSCI is considering increasing A shares weighting significantly. Nonetheless, Aussie is out-performed by New Zealand Dollar for now, on strong rebound in business confidence. Sterling is the weakest one in Asia as this week's rebound lost steam, followed by Euro. Dollar is mixed as the highly anticipated Fed rate hike is awaited. In other markets, US equities closed mixed overnight. DOW dropped -0.26% while S&P 500 lost -0.13%. But NASDAQ gained 0.18%. Treasury yields strengthen with 10 year yield up 0.024 to 3.103 and 30 year yield up 0.023 to 3.233. Dollar received little lift from yield though, because German 10 year bund yield was strong too and closed at 0.547. Japan 10 year JGB yield also stands firm at 0.127 in Asia. Talking about Asia, Nikkei is currently up 0.36%, Singapore Strait Times up 0.81%. Both Hong Kong HSI ( up 1.83%) and China Shanghai SSE (up 1.57%) are boosted by the MSCI news. Now, with SSE back above 2800 handle, it looks more likely that it has bottomed. Technically, Dollar is refusing to commit to a sustainable rebound yet. In particular, for Dollar bulls, the failure to break 0.7228 minor support in AUD/USD and 1.2975 minor resistance in USD/CAD is disappointing. These two levels will be watched together with 1.1723 minor support in EUR/USD, 1.3042 minor support in GBP/USD. However, it could be another way round if Fed delivers something dovish, we'll see Dollar's recent corrective fall extends. |
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