 The forex markets are generally stuck inside yesterday's range in subdued trading today. Chinese stocks attempted a recovery at the start of the session, but quickly turned into red again, continuing with Thursday's mini-crash. Other Asian markets are mixed though, with not much reactions to weaker US close overnight. As for the week, Euro is currently the strongest, followed by Australian Dollar and then Canadian. Sterling is the worst performing, followed by Kiwi and Swiss Franc. Dollar is mixed but judging from the pull back in gold, the greenback has potential to recover a bit further before close. Technically, gold dips back below 1800 handle as consolidation from 1817.91 is extending with another falling leg. Recent up trend is not ready to resume yet. But in any case, as long as 1773.42 support holds, upside breakout is expected eventually. We'd also maintain that Dollar has the potential for a stronger rebound, considering that it's close to key support level against Euro and Aussie. They are 1.1496 resistance in EUR/USD and 0.7064 resistance in AUD/USD. Break of 1.1325 minor support in EUR/USD and 0.6922 minor support in AUD/USD would signal that a rebound in the greenback in underway. In Asia, currently, FTSE is down -0.32%. Hong Kong HSI is up 0.61%. China Shanghai SSE is down -0.51%. Singapore Strait Times is up 0.14%. Japan 10-year JGB yield is flat at 0.015. Overnight, DOW dropped -0.50%. S&P 500 dropped -0.34%. NASDAQ dropped -0.73%. 10-year yield dropped -0.018 to 0.612. |
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