 Risk sentiments stabilized in Asia today despite the selloff in US overnight. But so far, momentum for rebound in stocks is very weak. Major indices are stuck in right range between gains and losses, in particular in China and Hong Kong. Yen is trading as the weakest one for the moment, partly also thanks to BoJ's sharp downward revision in fiscal 2019 inflation forecast. Swiss Franc follows as second weakest. On the other hand, New Zealand Dollar is boosted by better than expected CPI data, which reduces bets on RBNZ rate cut. Australian Dollar follows as second strongest. But Aussie's recovery, similar to stocks, lacks conviction. Technically, Sterling's rise now puts near term resistance levels into focus. Those levels include 1.3001 in GBP/USD, 142.22 in GBP/JPY and 0.8763 in EUR/GBP. Decisive break will likely bring more broad based rally in the Pound. Yen's recovery yesterday proves to be rather short-lived. Focus is back on 109.89 in USD/JPY and 125.09 in EUR/JPY. Break will resume recent rebound in yen crosses. Meanwhile, AUD/USD is still pressing 0.7116 minor support. Firm break there will indicate near term bearish reversal. In other markets, Nikkei closed down -0.14% at 20593.72. Hong Kong HSI is up 0.02%. China SSE is up 0.01%. Singapore Strait Times is down -0.48%. Japan 10-year JGB yield is up 0.0016 at 0.003, turned positive. Overnight in the US, DOW dropped -1.22%. S&P 500 dropped -1.42%. NASDAQ dropped -1.91%. 10-year yield dropped -0.054 to 2.730. |
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