Return to risk appetite is a main theme in the markets as another week starts. Another rate move by China's PBoC support sentiments in general. Yen drops broadly as a result while Canadian and Australian Dollar strengthen. Though, New Zealand Dollar is somewhat under pressure ahead of this week's RBNZ rate decision. Dollar is also mixed, awaiting guidance from Fed officials regarding their views on negative interest rates. Technically, while AUD/USD edges higher at open, it's struggling to rise through 0.6569 resistance so far. This resistance will be watched for confirming resumption of whole rebound form 0.5506. Dollar appears to be trying to pick-up some upside. In particular, USD/JPY is heading to 107.49 minor resistance. Break will suggest short term bottoming, and possibly completion of corrective fall from 111.71 too. In Asia, Nikkei closed up 1.05%. Hong Kong HSI is up 1.42%. China Shanghai SSE is down -0.02%. Singapore Strait Times is up 0.38%. Japan 10-year JGB yield is up 0.010 at 0.011. |
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