 Asian markets tumbled sharply earlier today in response to US designation of China as currency manipulator. USD/CNH also jumped to new high at 7.1399. But China's PBoC appeared to be trying to "smooth" Yuan's decline despite hard line rhetorics elsewhere. Asian stocks quickly pared back much of today's losses. In the currency markets, Australian Dollar is the strongest one for today, followed by Sterling and New Zealand Dollar. Yen is the weakest, followed by Swiss. But of course, for the week so far, Yen is the strongest, then Swiss. Aussie is worst followed by Dollar. Technically, EUR/USD rebound from 1.1026 short term bottom extends higher today but for now, we'd expect strong resistance from 1.1282 resistance to limit upside. Dollar turns softer again in GBP/USD, AUD/USD and USD/CAD. We'd expect this pairs to engage in consolidative trading for a while. Yen appears to be losing upside momentum, as seen in recovery in USD/JPY, GBP/JPY and more notably EUR/JPY. Yen should now engage in near term consolidations too. In Asia, Nikkei dropped -0.65%. China Shanghai SSE dropped -1.56%. Hong Kong HSI is currently down -0.57%. Singapore Strait Times is down -0.85%. 10-year JGB yield is up 0.0134 at -0.182. Overnight, DOW dropped -2.90%. S&P 500 dropped -2.98%. NASDAQ dropped -3.47%. 10-year yield dropped -0.120 to 1.735. |
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