 Dollar surged sharply overnight as boosted by hawkish Fedspeaks, strong rally in treasury yields as well as, solid services data. The greenback is paring some gains in Asian session, to Yen and Swiss Franc on risk aversion. But overall, Dollar remains firm, awaiting tomorrow's non-farm payroll report for more upside acceleration. Australian Dollar and New Zealand Dollar are the weakest ones, pressured by monetary policy divergence as well as falling Asian stocks. DOW hit record high at 26951.81 overnight but pared back much gain to close at 26828.39, up only 0.20%. S&P 500 closed up 0.07% and NASDAQ gained 0.32%. The biggest movers were in bond markets. 10-year yield closed up 0.105 at 3.161, broken 3.115 key resistance with much conviction. Risk sentiments turned sour in Asia though. Nikkei is currently down -0.60%, Hong Kong HSI is down -1.68%. Singapore Strait Times is down -0.98%. China is still on holiday. Technically, the immediately focus now is on 0.7084 in AUD/USD. Firm break there will resume the medium term down trend from 0.8135, January high. Another focus is 114.73 key medium term structural resistance in USD/JPY, which the pair could take on before end of the week. |
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