 Asian markets once again decouple from the US. While US stocks staged a strong rebound overnight, Asian indices are generally mixed. Weakness is indeed seen in China's Shanghai SSE while Yuan resumes recent free fall. There is some negative reaction to report that China is not eager to resume trade negotiations with US for now. Though, there is no official comments from both sides on when the meeting will resume. US Treasury Secretary Steven Mnuchin said that the delegation will travel to Beijing soon. But Trade Representative Robert Lighthizer kept his lips tight. In the currency markets, Yen is mildly firmer again today, followed by Swiss Franc and then Euro. Canadian Dollar is currently the weakest for today, followed by Aussie and then Sterling. For the week, Yen and Swiss Franc remain the joint winners, followed by Dollar. Pound is the worst performing one, followed by Aussie and then Kiwi. Technically, consolidation in Yen crosses continued overnight with mild recovery. But there is not little signal on bottoming yet. Based on recent weakness, GBP/JPY could lead the way down today. Focus will be on whether USD/JPY and EUR/JPY would follow by breaking 109.02 and 122.08 temporary lows respectively. AUD/USD's decline is still in progress, without much anticipated downside acceleration. Nevertheless, it's still on track to 0.6722 low. EUR/USD breached 1.1173 minor support overnight, without follow through selling. We'd watch for selling to pickup today. In Asia, currently, Nikkei is up 1.05%. Hong Kong HSI is down -0.85%. China Shanghai SSE is down -1.25%. Singapore Strait Times is down -0.65%. Japan 10-year JGB yield is up 0.0064 % -0.054. USD/CNH resumes recent rise to as high as 0.6943 so far, on track to retest 0.6980 high. Overnight, DOW rose 0.84%. S&P 500 rose 0.89%. NASDAQ rose 0.97%. 10-year yield rose 0.026 to 2.405. |
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