 Both Sterling and Euro trade firmer after UK Prime Minister Theresa May got Cabinet support for her Brexit deal. But no significant technical development is seen with these two currencies yet. Instead, Australian Dollar steals the show with strong employment data. Additional support to Aussie was given by news that China has already sent response to US demand regarding trade, even though there's no detail yet. On the other hand, Dollar is leading the way down as consolidation continues, followed by Swiss France and Yen. Technically, EUR/AUD takes the lead by breaking through 1.5575 temporary low today, resuming recent decline from 1.6357. AUD/USD might follow and challenge 0.7314 key structure support. Decisive break there will solidify the case of medium term bullish reversal. For Dollar-Europeans, despite this week's pull back, near term levels are holding well. That is, 1.1499 resistance in EUR/USD and 0.9952 support in USD/CHF are intact. Hence, Dollar remains bullish against the two. However, USD/JPY is risking near term bearish reversal ahead of 114.54/73 resistance zone. And focus is back on 112.94 minor support today. In other markets, DOW dropped notably by -0.81% to 25080.50 overnight. S&P 500 lost -0.76% and NASDAQ fell -0.90%. Treasury yields also turned weaker with 10 year yield closed down -0.025 at 3.120. That's a major factor for Dollar's softness this week. In Asian, Nikkei trades in opposite direction with others again today, down -0.45%. Hong Kong HSI, China Shanghai SSE and Singapore Strait Times are up 0.38%, 0.72% and 0.06% respectively. WTI crude oil's recovery is losing some steam and is back below 56 handle. |
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