 After some initial hesitation, Asian markets picked up some momentum and strengthen broadly, recovering some of this week's losses. Though, strength is so far limited with lots of uncertainty ahead. It's a fact that US-China trade war is dragging on for longer despite Trump's "positive" words. At the same time, April data from China showed that March rebound was just temporary. Slowdown in the economy is still in progress, even before collapse of trade negotiations. With new round of tariffs, it's not optimistic for China to bottom out soon. In the currency markets, Australian Dollar is currently the weakest one for today. Weaker wage than expected wage growth in Q1 is another drag on the Aussie. New Zealand Dollar and Yen follow as next weakest. Sterling and Euro are the strongest ones for today, followed by Canadian. The Loonie will need some solid reading from toady's CPI release to revive recent rebound. For the week, Swiss Franc, Yen and Dollar are the strongest in order. Aussie, Sterling and Kiwi are the weakest. Technically, as AUD/USD's decline extends, focus is on 0.6913 fibonacci projection level. Decisive break there, with downside acceleration, will solidify the case for larger down trend resumption. USD/JPY and EUR/JPY staying in consolidation. Focuses will be on 109.02 and 122.48 temporary lows respectively, for indication of fall resumption. USD/CAD will be a pair to watch today. It's staying in consolidation inside 1.3376/3521. Technically, we'd favor an upside breakout soon. In Asia, Nikkei closed up 0.56%. Hong Kong HSI is up 0.98%. China Shanghai SSE is up 1.76%, back above 2900 handle. Singapore Strait Times is down -0.07%. Japan 10-year JGB yield is down -0.0008 at -0.052. Overnight, DOW rose 0.82%. S&P 500 rose 0.80%. NASDAQ rose 1.14%. 10-year yield rose 0.014 to 2.419. 2.4 level will remain a level to watch today. |
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