Extremely higher volatility was seen in the markets overnight, with the steep decline in stocks and rally in yields. Bitcoin also had a free fall. Negative sentiments continue in Asia with major indexes trading in deep red. In the currency markets, Australia and New Zealand Dollars are under most selling pressure, followed by Yen. Dollar did extended the near term recovery slightly, but upside momentum is relatively weak. Sterling and Canadian Dollar are still the strongest for the week. Technically, we'd continue pay attention to Dollar pairs. Levels to watch include 1.1985 support in EUR/USD, 1.4008 support in GBP/USD, 0.7673 support in AUD/USD, 0.9163 resistance in USD/CHF, and 1.2265 resistance in USD/CAD. Dollar will need to break through these levels to confirm that it has bottomed for the near term. Otherwise, selling could come back any time. In Asia, at the time of writing, Nikkei is down -1.82%. Hong Kong HSI is down -0.92%. China Shanghai SSE is down -0.74%. Singapore Strait Times is down -0.67%. Japan 10-year JGB yield is up 0.0090 at 0.089. Overnight, DOW dropped -1.99%. S&P 500 dropped -2.14%. NASDAQ dropped -2.67%. 10-year yield rose 0.071 to 1.695. |
