 The financial markets are relatively steady today as new round of US-China trade war formally starts. Asian index are just mixed, with gains even seen in Hong Kong and Chinese stocks. In the currency markets, Dollar is currently trading as the weakest for today, followed by Sterling, and New Zealand Dollar. Australian Dollar was given a mild lift by RBA's Statement of Monetary Policy but the recovery quickly fades. After all, major pairs and crosses are bounded inside Friday's range and the picture could drastically change before weekly close. For the week, Yen remains the strongest one on risk aversion. Euro displays a lot of resilience as the second strongest, followed by Swiss Franc on risk aversion. Sterling is the worst performing one on Brexit impasse. But it could have a turn around should GDP and productions surprise on the upside today. New Zealand and Australian Dollars are the weakest. Technically, Yen is losing some upside momentum against Dollar, Euro and Sterling. Some retreats will be likely but for now, we'll assume any pull back to be brief first. AUD/USD recovered ahead of 0.6962, with no follow through buying. This support will remain in focus today and break will resume larger fall from 0.7295. EUR/USD, USD/CHF and USD/CAD remain in tight range despite yesterday's selloff in Dollar. For now, we'd still favor upside breakout in the greenback. In Asia, currently, Nikkei is down -0.91%. Hong Kong HSI is up 0.17%. China Shanghai SSE is up 0.47%. Singapore Strait Times is down -0.17%. Japan 10-year JGB yield is down -0.001 at -0.047. Overnight, DOW closed down only -0.54% at 25828.36 after diving to as low as 25517.39. S&P 500 lost -0.30%. NASDAQ dropped -0.41%. 10-year yield dropped -0.025 to 2.457, after diving to 2.425. |
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