 New Zealand rises broadly even though RBNZ hints on an August rate cut. The easing bias is actually well priced in and traders responds to the positive reference to the economy instead. Dollar also trying to extend yesterday's rebound as even the most dovish Fed official dismissed an aggressive 50bps cut in July. On the other hand, Yen is currently the softest one for today, followed by Sterling and then Swiss Franc. Focus will turn to US durable goods orders to see if Dollar could extend current rebound. Technically, after some volatility, NZD/USD is staying below 0.6681 resistance and maintains near term bearish outlook. That is, another fall is still expected through 0.6481 low at a later stage. While Dollar rebounded, there is no confirmation of bottoming yet. As long as these levels holds, more downside will remain in favor in Dollar: 1.1317 support in EUR/USD, 1.2642 support in GBP/USD, 0.9854 resistance in USD/CHF, 107.73 resistance in USD/JPY, 0.6903 support in AUD/USD. Separately, 0.8975 resistance in EUR/GBP will be watched and break will indicate resumption of recent rise for 0.9101 key resistance. In Asia, Nikkei closed down -0.68%. Hong Kong HSI is up 0.06%. China Shanghai SSE is down -0.37%. Singapore Strait Times is down -0.27%. Japan 10-year JGB yield is up 0.0103 at -0.141. Overnight, DOW dropped -0.67%. S&P 500 dropped -0.95%. NASDAQ dropped -1.51%. 10-year yield dropped -0.027 to 1.994. |
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