 New Zealand and Australian Dollar are trading as the strongest ones today so far, following rebound in Asian stocks. Nevertheless, both currencies are generally limited below last week's highs, indicating unconvincing upside momentum for now. Indeed, sentiments did turn more positive on US-China trade talks. But there are enough risks for investors to worry about. An imminent one is UK Prime Minister Theresa May's political downward spiral and whether she'd be ousted very soon. For today, Yen is the weakest one, followed by Dollar. Technically, AUD/USD is still struggling in very tight range around 0.7199 support. It's more likely to head downwards on breakout, then upwards. GBP/USD's decline extends in Asia today but EUR/GBP and GBP/JPY are held in tight range. More time is needed to digest this week's selloff in Pound. A focus for today is whether EUR/USD and EUR/JPY would finally have a downside breakout in recently established range. 1.1267 in EUR/USD and 127.49 in EUR/JPY are the levels to watch. In other markets, US stocks ended mixed overnight. DOW closed down -0.22% at 24370.24. S&P 500 also dropped -0.04% to 2636.78. But NASDAQ closed up 0.16% at 7031.83. 10-year yield rose up 0.023 at 2.879. But yield curve flattened at the long end with 30 year yield closed flat at 3.129. Also, 3-year yield (2.763) and 5-year yield (2.743) remains inverted. In Asia, Nikkei is trading up 1.96%, Hong Kong HSI up 1.54%, China Shanghai SSE up 0.20%, Singapore Strati Times up 0.88%. 10 year JGB yield is also up 0.0052 at 0.051. Investors seem cautiously optimistic. |
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