 Asian markets generally strengthen today and are given another lift after US politicians finally agreed to a USD 2T coronavirus stimulus deal. Australian Dollar leads other commodity currencies higher. On the other hand, Yen weakens broadly, followed by Yen and then Dollar. Some important economic data will be released today including German Ifo, UK CPI and US durable goods orders. But these data might be shrugged off again by the markets. Main focus remain on the development of coronavirus pandemic, which has led to 18900 deaths globally already. Technically, we'd maintain then current pull back in Dollar is just a leg inside a consolidation pattern. levels to watch include 1.0981 resistance in EUR/USD, 1.2129 resistance in GBP/USD, 0.9901 support in USD/CHF, and to a lesser extent 1703.28 high in Gold. As long as these levels hold, we'd expect Dollar to make a come back sooner or later. Though, the picture could be complicated by USD/JPY, which is facing 112.22 key resistance. Reactions from there could spread to other Yen pairs, or Dollar pairs, or both. In Asia, Nikkei closed up 8.04%. Hong Kong HSI is up 2.78%. China Shanghai SSE is up 2.11%. Singapore Strait Times is up 3.25%. Japan 10-year JGB yield is down -0.0023 to -0.037. Overnight, DOW rose 2112.98 pts or 11.37%. S&P 500 rose 9.38%. NASDAQ rose 8.12%. 10-year yield rose 0.052 to 0.816. |
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