Euro weakens somewhat today after EU finally reached an agreement on the recovery fund. Traders seem to be taking some profits as expectations become news. Though, New Zealand Dollar is even weaker, partly thanks to cross selling, especially against Aussie. Canadian and Aussie are the strongest ones on risk-on sentiments. Asian markets are generally higher following the record close in NASDAQ overnight. Aussie is given additional boost as RBA Governor rules out negative rates and intervention. Technically, a focus today is whether EUR/USD would turn into a deeper pull back, ahead of 1.1496 key medium term resistance. Focus would be on 1.1370 minor support and break would be an indication of short term topping. But the tide is not so much on Dollar's side as Gold broke 1817.91 resistance to resume recent up trend. AUD/NZD's rise today further affirm that correction from 1.0880 has completed with three waves down to 1.0565. Further rise is now in favor to retest 1.0880. That might give AUD/USD additional fuel to power through 0.7064 key resistance. In Asia, currently, Nikkei is up 0.83%. Hong Kong HSI is up 1.88%. China Shanghai SSE is up 0.07%. Singapore Strait Times is up 0.44%. Japan 10-year JGB yield is down -0.014 at 0.011. Overnight, DOW rose 0.03%. S&P 500 rose 0.84%. NASDAQ rose 2.51%. 10-year yield dropped -0.008 to 0.620. |
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