Sentiments turned sour again after US President Donald Trump's harsh words on China at UN. But reactions in the forex markets are relatively muted. Dollar is the stronger one for now. New Zealand Dollar is supported after RBNZ stands pat without hinting on another imminent rate cut. On the other hand, Australian Dollar is the weakest so far. Sterling is reversing some of yesterday's brief and weak rebound. Technically, most major pairs and crosses are staying in consolidations. Yen crosses' recoveries yesterday were rather weak. Focuses will stay on 106.68 in USD/JPY, 117.55 in EUR/JPY and 132.17 in GBP/JPY. Break will bring retests of recent low at 104.45, 115.86 and 126.54 respectively. If risk aversion comes back, we might see renewed selling in Australian and Canadian Dollar. That is, AUD/USD would resume the fall from 0.6894 to retest 0.6677 low. USD/CAD would finally rise through 1.3310 temporary top too. In Asia, currently, Nikkei is down -0.38%. Hong Kong HSI is down -1.07%. China Shanghai SSE is down -0.60%. Singapore Strait Times is down -0.79%. Japan 10-year JGB yield is down -0.0166 at -0.255. Overnight, DOW dropped -0.53%. S&P 500 dropped -0.84%. NASDAQ dropped -1.46%. 10-year yield dropped -0.073 to 1.635. |
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