 Commodity currencies are trading mildly higher today as Asian markets turned mixed. Australian Dollar is the stronger one, followed by New Zealand. On the other hand, Swiss Franc is the weakest, followed by Euro and Yen. Reactions to S&P's rating review on Italy were rather muted. Sterling is also slightly firmly as Hammond' budget speech is awaited. And, like most Mondays, the picture could change drastically as volatility kicks in during the European session. Additionally, we'll also have some important economic data for almost every major currencies in the week ahead. Technically, a key to watch this week is whether Dollar would lose near term upside momentum further, or even reverse. AUD/USD led the way last Friday with the strong rebound and focus will be back on 0.7159 resistance. Meanwhile, EUR/US is now very close to 1.1300 key support level, which is equivalent to 96.98 key support in dollar index. Another focus is how deep Yen crosses will fall to. For now, downside momentum in EUR/JPY, GBP/JPY and even USD/JPY remain rather solid. In other markets, Nikkei is trading up 0.53% at the time of writing, Singapore Strait Times up 0.56%. But Hong Kong HSI and China Shanghai SSE are down -0.07% and -1.47% respectively. Japan 10 year JGB yield is down -0.0012 at 0.114. Gold is hovering around 1233 and there is no follow through buying through 1240 handle yet. |
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