 Markets turn into deep risk averse mode on concerns over US-China relations. . It's not getting more unlikely that the phase one trade deal would be agreed in time to avert tariff escalation on December 15. Political tensions also intensified after House passed the the Uighur Act, just a week after the Hong Kong Human Rights and Democracy Act was signed into law. Yen finally rides on risk aversion and surges across the board. Meanwhile, Australian and New Zealand Dollars are the weakest for today so far, with Aussie additionally pressured by GDP miss. Canadian Dollar is mixed, awaiting BoC rate decision. Technically, EUR/USD's rebound this week is still kept below 1.1097 resistance. Bearish near term outlook is maintained for another fall through 1.0981. But break of 1.1097 will pave the way back to 1.1709 high. EUR/AUD's rebound, on the other hand, neutralized the original bearish view and turned focus back to 1.6323 resistance. But EUR/JPY's break of 121.01 minor support yesterday suggests completion of rebound from 119.24 and turn focus back to this low. The common currency is pretty mixed! In Asia, Nikkei closed down -1.05%. Hong Kong HSI is down -1.17%. China Shanghai SSE is down -0.23%. Singapore Strait Times is down -0.43%. Japan 10-year JGB yield is down -0.0196 at -0.038. Overnight, DOW dropped to as low as 27325.14 before closing at 27502, down -1.01%. S&P 500 dropped -0.66%. NASDAQ dropped -0.55%. 10-year yield dropped -0.0127 to 1.709, and 1.7 handle is now at risk after failing to sustain above 1.8. |
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