 Asian markets are trading mildly lower today, following the weakness in US overnight. While DOW dropped more than -900 pts during the session, it managed to pare back half of the losses to close down -509.72 pts only. Following that, Dollar and Yen retreated some gains while Gold also recovered. Trading also turned a bit quiet with Japan staying on holiday. But volatility could increase again ahead, depending on the development in the risk markets. Technically, Dollar's rally remains relatively unconvincing for now. EUR/USD is still holding above 1.1737 temporary low, GBP above 1.2762 support, AUD/USD above 0.7192 support, USD/CHF below 0.9200 resistance. These levels will continue to be watched to confirm Dollar's underlying strength. As for the development in the global stock markets, Hong Kong HSI is worth a mention. It finally took out 24167.78 key near term support yesterday, after prior rejection by 55 day EMA. Development is clearly bearish that whole rebound from 21139.26 has completed. HSI is likely heading back to retest this support level. While HSI is currently steady, any renewed selloff today, as European traders enter into the markets, could be an indication of more risk aversion for the rest of the day. In Asia, currently, Hong Kong HSI is down -0.36%. China Shanghai SSE is down -0.26%. Singapore Strait Times is down -0.74%. Japan is on holiday. Overnight, DOW dropped -1.84%. S&P 500 dropped -1.16%. NASDAQ dropped only -0.13%. 10-year yield dropped -0.023 to 0.671. |
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