Investors in Asia remain generally cautious today as reflected in the mixed markets. US-China tensions look set to escalate further after President Donald Trump said closure of other Chinese missions is "always possible". Yet, the developments give no special support to Dollar and Yen. Both remain the weakest for the week, and stay soft today. Australian Dollar is holding on to this week's gains after the government said budget deficit is set to widen further in the current fiscal year. New Zealand Dollar is following as the second strongest. Technically, there is prospect of a mild recovery in Dollar and Yen today. EUR/USD, AUD/USD and Gold are losing some upside momentum after hitting near term projection levels. EUR/JPY is also set to face 124.43 key resistance. Yet, even if recoveries occur, there wouldn't be sign of bottoming until some near term levels are violated. The levels include 1.1402 support in EUR/USD, 0.6963 support in AUD/USD, 121.96 support in EUR/JPY and 1817.91 resistance turned support in Gold. In Asia, Japan is on holiday today. Hong Kong HSI is up 0.45%. China Shanghai SSE is down -0.83%. Singapore Strait Times is up 0.95%. Overnight, DOW rose 0.62%. S&P 500 rose 0.57%. NASDAQ rose 0.24%. 10-year yield dropped -0.0012 to 0.595. |
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