 Markets are back in risk averse mode as another week starts, after Spain and Italy suffered the worst days of coronavirus pandemic over the weekend. US Senate failed to advance another aid package on differences between Republican and Democrats. But resolution would be seen soon based on the severity of the outbreak in the US, which surged pass Spain already. RBNZ announced QE at NZD 30B size while the country enter into lockdown, together with Australia. The better news is that South Korea's new cases hit the lowest level since the peak in February. Based on the experience in South Korea and Taiwan, the pandemic is realistically containable. In the currency markets, Yen and European majors are currently the stronger ones, while commodity currencies and Dollar are the weaker. But major pairs and crosses are generally bounded inside Friday's range. Technically, Dollar is losing upside momentum further, as seen against Euro, Swiss and Yen. These pairs should follow other Dollar pairs to turn into consolidations. WTI crude oil could be the one to watch, with today's decline. Focus is back on 20.40 low set last week and break will extend recent down trend towards 10.65/17.12 long term support zone. In Asia, Nikkei closed up 2.02%. But Hong Kong HSI is down -4.39%. China Shanghai SSE is up -2.53%. China Shanghai SSE is down -2.53%. Singapore Strait Times is down -7.66%. Japan 10-year JGB yield is down -0.210 at 0.070. |
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