The Asian markets opened the week relatively mixed. Stocks gained initially on US Senate passage of the USD 1.9T stimulus bill. But sentiments are weighed down by concerns of inflation as oil prices jumped. Dollar is firm against Yen, Euro and Swiss Franc and look set to continue with last week's rally. But the greenback struggles to pick up momentum against commodity currencies, except Kiwi. Gold is struggling to get persistent buying despite recovery attempt. Technically, further rise is still in favor in Dollar, in particular against Euro, Swiss and Yen. Levels to watch include 1.1990 minor resistance in EUR/USD, 0.9192 minor support tin USD/CHF and 107.81 minor support in USD/JPY. Dollar's rally is not under threat as long as these levels hold. Additionally, more downside is expected in gold as long as 1740.32 minor resistance holds. Another round of selloff could push gold through medium term channel support, while prompt some downside acceleration. That would create a favorable condition for Dollar to extend rally. In Asia, currently, Nikkei is down -0.39%. Hong Kong HSI is down -1.34%. China Shanghai SSE is down -1.01%. Singapore Strait Times is up 1.78%. Japan 10-year JGB yield is up 0.0183 at 0.115. |
