 US equities staged a strong rebound overnight with DOW ended up more than 400 pts. But positive sentiment didn't carry on in Asia as major indices are all in red. Intensification in selloff in the Chinese Yuan is a possible factor even though we're not too convinced by this theory. Both Chinese and Hong Kong stocks are just down less than -1% only. Weakness in Asian stocks is more of an extension of recent down trend. In the currency markets, pressure in back on commodity currencies. New Zealand Dollar lead the way lower, followed by Australian and Canadian. In particular, the resilient AUD/USD has finally taken out 0.7040 low to resume medium term down trend. On the other hand, Yen is the strongest one on risk aversion. The Sterling is the second strongest for now as it's digesting recent declines. But the recovery in Pound is unlikely to last long. Dollar drew some strength as Trump's new Fed addition turned out to be hawkish. But it's cautiously mixed, awaiting Q3 GDP. For the week, Yen is the strongest one while Sterling is the weakest. Technically, as AUD/USD has resumed recent down trend, it's time for AUD/JPY to break equivalent support at 78.67 to resume the down trend from 90.29. USD/CAD has reversed all the post BoC losses already. 1.3132 resistance in the pair will be a key focus today, especially with US GDP scheduled. Downside acceleration in both EUR/JPY and GBP/JPY further solidify the case of bearish near term reversal. We'd probably see a take on 124.89 and 139.88 key support level respectively next week. At the same time EUR/USD and GBP/USD should also be heading to recent low at 1.1300 and 1.2661 respectively. | 
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