 Dollar drops broadly overnight after Fed indicates that it's ready to "act as appropriate" on interest rates, depending incoming data. It's clearly a sign that Fed is opening door for rate cut, even though it may not come as soon as in July. Selling picks up momentum today together with falling 10-year yield, which breaches 2.0 handle in Asian session. At this point, Australian Dollar follows as second weakest as RBA affirmed more rate cut is underway. Yen is third weakest on strong rally in Asian stocks. New Zealand Dollar is the strongest following better than expected GDP report, and then Swiss Franc and Euro. Technically, USD/JPY's break of 107.81 support confirms resumption of fall from 112.40 for 104.69 low. It's seen as the most important indication of Dollar weakness. USD/CAD broke 1.3239 support to resume fall from 1.3564 and reaffirm case of medium term bearish reversal. USD/CHF's sharp decline indicate rejection by 1.0008 support and it's heading through 0.9854 support to resume down trend from 1.0237. 1.1347 in EUR/USD and 1.2765 resistance in GBP/USD will be two key resistance to overcome, to align Dollar's bearish outlook. In the stock markets, DOW just closed up 0.15% overnight. S&P 500 rose 0.30% while NASDAQ rose 0.42%. In Asian, Nikkei closed up 0.60%. China Shanghai SSE closed up 2.38% to 2987.12, close to 3000 handle. Hong Kong HSI is up 1.09%. Singapore Strait Times is up 0.90%. In bond markets, Japan 10-year JGB yield is down -0.0316 to -0.166. US 10-year yield hits as low as 1.976 in Asian session, now back at 2.0001. |
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