 After a strong Q1, risk appetite extended into the first week of Q2. The most notable improvements were seen in the bond markets, as German 10-year yield turned positive again. US 10-year yield also reclaimed 2.5 handle. However, stocks and 10-year yield are both near to key resistance zone. Reversals could be around the corner. Besides, the positive development was not too much reflected in the currency markets, which is a sign of indecisiveness. Australian Dollar was the strongest one, partly on risk appetite, partly on Chinese data and trade talks, and partly on its own retail sales data, and a neutral RBA statement. However, firstly, AUD/USD is kept in recent range between 0.7052/7168. EUR/AUD failed to sustain below 1.5721 key support. AUD/JPY also lost momentum ahead of 79.84 key resistance. It's strength is not too convincing. Pound is the second strongest but was limited generally inside prior week's range. It's a strong signal that there was no clear direction. Meanwhile, Yen gyrated lower, together with Swiss Franc but there was no confirmation of bearish version. Also, neither of them was the weakest, but New Zealand Dollar. |
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