The forex markets are generally quiet in Asian session today. Major pairs and crosses are bounded inside yesterday's range. Australian and New Zealand Dollars are mildly firmer while Yen and Canadian are the weakest. Dollar rebound overnight after Fed Chair Jerome Powell talked down the chance of a rate cut. But there is no follow through buying for now. Focus will turn to BoE Super Thursday first. But traders could have to wait for Friday's non-farm payroll for the bigger moves. Technically, USD/CHF recovered after drawing support from 1.0130 minor support, and maintained near term bullishness. USD/JPY's decline also slowed ahead of 110.84 near term support and recovered, providing no indication of bearish reversal. EUR/USD was held well below 1.1324 near term resistance, maintaining bearishness. For now, Dollar appears to be safe and more upside is in favor, subject to solid job data tomorrow. AUD/USD could be a pair to watch today. Deterioration in risk sentiment could drag it through 0.6988 support to resume recent decline from 0.7295. In Asia, Hong Kong HSI is up 0.62%. China Shanghai SSE is up 0.52%. Singapore Strait Times is down -0.56%. Japan is in ultra-long 10-days holidays. Overnight, DOW closed down -0.61%, S&P 500 lost -0.75% and NASDAQ dropped -0.57%. 10-year yield rose 0.002 to 2.511 after hitting 2.455. |
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