The forex markets turned mixed today, together with major Asian indices. Dollar and Yen are trying to recover but there isn't any conviction in buying. Both remain the worst performing ones for the week so far. News regarding lockdown exits and coronavirus vaccines were generally welcomed. But investors are turning a bit more cautious, awaiting further development in the US-China-Hong Kong tensions. US President Donald Trump indicated something "very powerful" is underway regarding their response to China's push for national security laws in Hong Kong. We'll what those response would be, before the end of the week. Technically, the greenback's development against commodity currencies would be a major focus for now. AUD/USD is pressing 0.6670 key resistance level and sustained break there could raise the chance of medium term reversal. At least, 0.7031 resistance will be the next target. USD/CAD is also pressing 1.3762 fibonacci support and break will also raise the chance of medium term bearish reversal and put 1.3664 key resistance turned support into focus. In Asia, Nikkei closed up 0.70%. Hong Kong HSI is down -0.90%. China Shanghai SSE is down -0.36%. Singapore Strait Times is down -0.55%. Japan 10-year JGB yield is down -0.0021 at 0.001. Overnight, DOW rose 2.17%. S&P 500 rose 1.23%. NASDAQ rose 0.17%. 10-year yield rose 0.041 to 0.698. |
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