Risk appetite continues today with mild strength in Asian markets, following the slightly higher close in US overnight. It seems that investors completing ignoring the unrest in the US, as well as its tension with China. In the currency markets, Sterling is currently the strongest one for today, followed by Canadian. Australian Dollar is firm as one of the strongest after RBA stayed firmly on hold. New Zealand Dollar is the weaker one, paring some of recent gains. Yen and Dollar are the weakest. Technically, the rally in AUD/NZD is seen as a reason for Kiwi's sluggishness this week. Rise from 0.9994 has resumed with focus on 1.0865 resistance, which is close to medium term falling trend line. Sustained break there will open up further rally towards 1.1676. USD/CAD's strong break of 1.3664 cluster support zone suggests medium term bearish reversal. AUD/USD is now eyeing 0.6826 key resistance to confirm medium term bottoming too. In Asia, Nikkei closed up 1.19%. Hong Kong HSI is up 0.75%. China Shanghai SSE is up 0.16%. Singapore Strait Times is up 1.76%. Japan 10-year JGB yield is down -0.0028 at 0.008. Overnight, DOW rose 0.36%. S&P 500 rose 0.38%. NASDAQ rose 0.66%. 10-year yield rose 0.0014 to 0.662, as range trading continued. |
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