 Asian markets are generally in red following the steep corrective selloff in the US overnight. The forex markets are relatively steady though, with Dollar and Yen trading with a firm tone. Australian and New Zealand Dollars are the weakest ones, followed by Sterling. Over the week, Dollar is set to end as the strongest one, subject to reactions to non-farm payroll report today. But even so, the question is on whether the greenback could close above prior week's high. Technically, we'd reiterate again that no key resistance level is taken out despite the strong rebound in Dollar in the past two days. The closer ones are 1.1762 support in EUR/USD and 0.9161 resistance in USD/CHF. These two levels have to be taken out before considering the rebound a genuine one. Separately, AUD/JPY is an interesting one to watch now. We remain cautious that thrust out of the triangle consolidation is a terminal one. That is, it could conclude a larger rally. As long as 76.78 resistance turned support holds, the up trend is still safe. But a firm break there would start a larger correction and bring deeper fall to 55 day EMA for confirmation. In Asia, currently, Nikkei is down -1.20%. Hong Kong HSI is down -1.65%. China Shanghai SSE is down -1.36%. Singapore Strait Times is down -1.46%. Japan 10-year JGB yield is up 0.002 at 0.037. Overnight, DOW dropped -2.78%. S&P 500 dropped -3.51%. NASDAQ dropped -4.96%. 10-year yield dropped -0.029 to 0.622. |
No comments:
Post a Comment