 Asian stocks gapped sharply lower follow steep fall in US equities overnight. But sentiments were then lifted by optimism over US-China trade negotiations. Australian and New Zealand Dollar benefited from the development and are now trading as the strongest ones. On the other hand, Yen and Dollar turn softer, paring yesterday strong's gains. Though for the week so far, New Zealand Dollar is the strongest, followed by US Dollar and Canadian. Euro is the worst as markets are awaiting Italy's formal response to EU budget rejection. Sterling is the second weakest on Brexit impasse. Technically, after taking out 1.1300 yesterday, there is no sign of bottoming in EUR/USD yet. Medium term down trend is in progress and should be extending to 1.1186 fibonacci level. USD/JPY continues to lose momentum ahead 114.54/73 resistance and we might see a near term reversal from there. AUD/USD breached 0.7182 support briefly but followed Asian stocks and rebound. EUR/AUD also breaks through 1.5601 structure support without much hesitation, which is quite bearish. It's probably not the time for selloff in Aussie yet. In other markets, DOW closed sharply lower by -602.12 pts or -2.32% at 25387.18. S&P 500 dropped -1.97% and NASDAQ declined -2.78%. Treasury yield were steady though, as 10 year yield closed down -0.003 at 3.186. In Asia, Nikkei lags behind others and is trading down -2.20%. But Hong Kong HSI staged a 500 pts reversal after gapping down. It's now down just -0.07%. Similarly, China Shanghai SSE also dripped to as low as 2597 but it's now at 2653, up 0.86%. Singapore Strait Times also pared back some losses and is down only -0.58%. |
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