 Dollar firm up mildly together with Yen as markets await non-farm payroll report today. The greenback suffered brief setback overnight as traders turned a bit cautious ahead of job report. But Dollar quickly find footing from surging treasury yields. Canadian Dollar also firm up slightly today. BoC is widely expected to hike again this month. Today's job data shouldn't deter the path but might add to speculations of more down the road, it it's strong. Australian and New Zealand remain the weakest ones, on monetary policy divergence and risk aversion in Asia. US treasury yields extended the strong march overnight. 10-year yield closed up 0.036 at 3.197. 30-year yield closed up 0.036 at 3.355. Stocks were apparently troubled by that as DOWN lost -0.75% to 26627.48. S&P 500 dropped -0.82% while NASDAQ declined even worse by -1.81%. In Asia, Nikkei is down -0.52% at the time of writing, Hong Kong HSI is down -0.42%, Singapore Strait Times is down -0.94%. China is still on holiday and it's definitely an interesting thing to see next week, on how bad their market performs. Japan JGB 10 year yield drops slightly by -0.0065 to 0.153. Let's see how far it can go beyond BoJ's allowed band of -0.1 to 0.1%. Technically, while Dollar treated against Euro and Sterling overnight, it's kept well above minor near term support level. These are, 1.1623 in EUR/USD and 1.3115 in GBP/USD. Both are technically still bearish for the near term. The tricky part is indeed USD/JPY, which lost much momentum ahead of 114.73 key resistance. A break of 113.51 will likely bring more consolidation. AUD/USD took out 0.7084 to resume medium term down trend yesterday. EUR/AUD also took out 1.16252 minor resistance, which suggests that medium term up trend is resuming. Break of 1.6353 high will confirm. |
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