 Once again, it seems that emergency fiscal and monetary measures by global governments and central banks couldn't be cared less by investors. US Congress' second stimulus package, ECB's massive EUR 750B pandemic emergency purchase program, RBA's rate cut and government bond buying, are all shrugged off. Optimism won't come back until there is a way to slow the coronavirus pandemic, with close to 220k cases and 9k deaths globally now. In the currency markets, it's a two-league game. Safe haven flows are supporting Dollar, Euro, Swiss and Yen. On the other hand, commodity currencies and sterling are all under pressured. Technically, AUD/USD is now pressing a long term fibonacci level at 0.5507 and we'll see if it can form a base there. Otherwise, 2001 low at 0.4773 will be the next medium term target. USD/CAD is now eyeing 1.4689 (2016 high) and break will resume whole up trend from 2017 low at 0.9056. The more interesting one would be EUR/USD, which is now close to 1.0777 low. We're not anticipating a firm break there for now. But who knows. In Asia, currently, Nikkei is down -1.49%. Hong Kong HSI is down -4.25%. China Shanghai SSE is down -2.14%. Singapore Strait Times is down -4.44%. Japan 10-year JGB yield is up 0.013 at 0.080. Overnight, DOW dropped -6.30%. S&P 500 dropped -5.18%. NASDAQ dropped -4.70%. 10-year yield jumped sharply by 0.269 to 1.266. |
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