Australian and New Zealand Dollar rise broadly on optimism that US and China are "ahead of schedule" in completing the phase one trade deal. Dollar and Canadian are not too far away but buying is relatively refrained ahead of Fed and BoC rate announcement. On the other hand, European majors are softer as political uncertainty in UK continue. Yen is also weak following strength in treasury yields. Technically, EUR/AUD's break of 1.6203 support now suggests that corrective recovery from 1.5905 has completed at 1.6432 already. Deeper fall would be seen back to retest 1.5905 low. The question now is whether EUR/USD would follow and break through 1.1062 minor support for retesting 1.0879 low. Or, AUD/USD would break through 0.6894 resistance to add to the case of medium term bullish reversal. Or, both would happen at the same time. Meanwhile, USD/JPY's break of 108.93 suggests resumption of whole rise from 104.45 to 109.31 key resistance next. In Asia, Nikkei closed up 0.47%. Hong Kong HSI and China Shanghai SSE buck the positive sentiment and is down -0.39% and -0.54% respectively. Singapore Strait Times is up 0.40%. Japan 10-year JGB yield is up 0.0216 at -0.110. Overnight, DOW rose 0.49% overnight, while S&P 500 rose 0.56%. NASDAQ rose 1.01%. 10-year yield rose 0.052 to 1.853. |
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