 Risk-on trades dominated the US markets overnight, as Fed officials indicated the willingness to keep accommodative measures in place. Yet, sentiments turned mixed in Asian markets. Hong Kong and Chinese stocks are weighed down by US President Donald Trump's decision to end Hong Kong's special status, after China imposed national security law by passing the city's legislature. In the currency markets, Dollar is trading as the worst performing one, followed by Yen and then Swiss Franc. New Zealand Dollar leads commodity currencies higher, followed by Aussie and Canadian. This is a rather typical risk on pattern. Technically, while DOW's 556 points looked impressive, the index is actually still bounded in near term consolidation pattern below 27580.21. Repeated support from 55 day EMA is a bullish sign. But there is no indication of rally resumption yet. Dollar will be a focus today after this week's selloff. EUR/USD will be heading towards key resistance at 1.1496, which is medium term trend defining. AUD/USD is also eyeing 0.7031/7064 resistance zone and firm break there will carry medium term bullish implications. It's also about time for gold to complete the sideway consolidation from 1817.91, with an upside breakout. In Asia, Nikkei closed up 1.59%. Hong Kong HSI is down -0.15%. China Shanghai SSE is down -1.04%. Singapore Strait Times is up 1.18%. Japan 10-year JGB yield is up 0.0006 at 0.026. Overnight, DOW rose 2.13%. S&P 500 rose 1.34%. NASDAQ rose 0.94%. 10-year yield dropped -0.025 at 0.615. |
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