 The forex markets are rather quiet in Asia, as Japan starts an ultra-long 10-day holiday ahead of Imperial succession. New Zealand and Australian Dollar extends the corrective recovery started late last week, ignoring initial weakness in Chinese stocks. On the other hand, Yen is generally lower, followed by Canadian. The economic calendar is extremely busy this week, with a lot of heavy weight data scheduled. For today, US PCE inflation will be the major focus and would likely point to sluggishness in underlying inflation pressure. Technically, after last week's strong rally, Dollar and Yen have turned into consolidation. Losses in both currencies are so far rather limited. The markets could be rather volatile this week. In particular, Yen crosses could further test key near term support levels. Immediate focus will be 143.72 in GBP/JPY. Meanwhile, 123.65 in EUR/JPY, 77.44 in AUD/JPY and 81.63 in CAD/JPY will all be watched to confirm Yen's bullish comeback. In Asia, Hong Kong HSI is up 0.83%. China Shanghai SSE is down -0.14%. Singapore Strait Times is up 1.40%. Gold is gyrating around 1280. WTI crude oil is at around 63 handle after Friday's steep pull back. |
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