 Both Dollar and Canadian are under tremendous selling pressure after respective central bank announcements overnight. Fed chair Jerome Powell did signal a pause after yesterday's rate cut. Yet, his message was too non-committal and let Dollar bulls dissatisfied. On the other hand, BoC was clearly more dovish than expected and raised the possibility of an "insurance' rate cut. New Zealand and Australian Dollars are the strongest for today, as both are lifted by notable improvements in some economic data. Also, US and China are still on track to complete phase one trade deal despite cancellation of APEC summit in Chile. Yen stays mixed after BoJ stands pat and changed the forward guidance to indicate clear easing bias. Technically, AUD/USD's strong break of 0.6894 resistance, with upside acceleration, is now an early signal of medium term bullish reversal. Further rise would be seen to 0.7082 resistance, which is the rest test. EUR/AUD is on track to 1.6074 support first and break will target 1.5905 low. USD/CHF's steep decline now puts focus back to 0.9841 support. Break will complete a head and should top pattern (ls: 0.9983, h: 1.0027, rs: 0.9970) which is a clear bearish sign. EUR/USD is also eyeing 1.1179 resistance and break will resume recent rally from 1.0879. In Asia, Nikkei rose 0.37%. Hong Kong HSI is up 0.83%. China Shanghai SSE is down -0.35%. Singapore Strait Times is up 0.69%. Japan 10-year JGB yield is down -0.0208 at -0.141. Overnight, DOW rose 0.43%. S&P 500 rose 0.33% to 3046.77 after hitting new record at 3050.10. NASDAQ rose 0.33%. 10-year yield dropped -0.037 to -1.798. |
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