 Dollar firms up broadly in early US session as markets are awaiting FOMC rate decision. A 25bps hike is widely expected and there is no change for Fed to disappoint. The tricky part is the new economic projections which could make or break Dollar' rebound. At the time of writing, Yen and Canadian Dollar are trading as the second strongest ones. Swiss Franc suffers another day of deep, broad based selling today and it's followed by Euro and the Sterling as the weakest ones. Australian Dollar was lifted rather briefly by the rebound in Chinese stocks earlier today. But it's losing steam into US session. In other markets, major European indices are mixed at the time of writing. FTSE is down -0.02%, DAX down -0.18% and CAC up 0.34%. Germany 10 year bund yield is down slightly by -0.008 at 0.539 but stays very firm above 0.5 handle. Earlier today, Nikkei closed up 0.39%, Singapore Strait Times up 0.09%, Hong Hong HSI up 1.15%. China Shanghai SSE rose 0.92% to 2806.81, closed above 2800 psychological level. In particular, SSE's strong close above medium term channel resistance and 55 day EMA should have confirmed defending of 2638.30 key support (2016 low). Further rebound is now in favor in near term. Elsewhere, Gold is back at 1195 but it's holding above 1187.58 near term support. Thus, another rise remains mildly in favor in near term through 1214.30. Technically, in spite of the rebound attempt, no technical level is broken by the Dollar. EUR/USD is holding above 1.1723 minor support, GBP/USD above 1.3042, AUD/USD above 0.7228. USD/CAD is also held below 1.2975. More is needed for dollar to confirm its underlying bullish momentum. These mentioned levels will be watched closely for the rest of the session. |
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