Australian and New Zealand Dollar suffered heavy selling today as risk aversion weighs. Major Asian indices are all in red on trade war worries and selling is intensifying into mid-Asian session. Dollar doesn't ride on the wave and is trading as the third weakest. But the greenback is seen as just being cautious ahead of Non-Farm Payrolls report. Yen is naturally the strongest one as it's also lifted by news that Japan is Trump's next trade target. Canadian Dollar is the second strongest after BoC Wilkins hinted at more rate hike despite NAFTA uncertainties. The Loonie will also look into its job data today. At the time of writing, Nikkei is trading down -1.01%, Hong Kong HSI down -0.86%, Singapore Strait Times down -0.75%. China Shanghai SSE had a brief break above 2720 but is now back below 2700 handle, down -0.13%. Overnight, DOW closed up 0.08%. But NASDAQ suffered deep selling and lost -0.91%. S&P 500 dropped -0.37%. Gold is hovering around 1200 and recent consolidation extends. Technically, USD/JPY's break of 110.68 minor support suggests that fall from 111.82 has resumed and more downside might be seen. But we'd continue to expect strong support from around 109.90 to contain downside and bring rebound. USD/CAD's break of 1.3134 minor support suggests more consolidations would be seen before another rally. USD/CHF is now pressing 0.9651 low and the fall from 1.0067 looks ready to resume. EUR/AUD's rally is also extending through 1.6216 fibonacci projection level. |
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