Asian markets are staying in full risk on mode, except China, following the record runs in US overnight. However, this time, Dollar is not facing much selling pressure, but recovered instead. The reflation trade and strong rally in treasury yield might finally start to give the greenback a floor. Still, Dollar will need to face the test of non-farm payroll report today first, as well as the reactions to the data. For now, Yen is the worst performing one for the week, followed by Sterling and then Dollar. New Zealand Dollar is the best performing, followed by Australian and then Euro. The positions could still change. Technically, EUR/JPY's break of 127.22 resistance is seen more as a weakness in Yen. That's accompanied by breach of 103.89 resistance in USD/JPY. A question is on whether the overall development could transform into a more sustainable rebound in Dollar. Levels to watch will include 1.2214 support in EUR/USD and 0.8918 resistance in USD/CHF. 1900.68 temporary low in Gold could provide another indication too. In Asia, currently, Nikkei is up 1.85%. Hong Kong HSI is up 1.27%. China Shanghai SSE is down -0.62%. Singapore Strait Times is up 1.81%. Japan 10-year JGB yield is down -0.0016 at 0.039. Overnight, DOW rose 0.69%. S&P 500 rose 1.48%. NASDAQ rose 2.56%. 10-year yield rose 0.0029 to 1.071. |
