Major pairs and crosses are still bounded inside last week's range as markets failed to take a decisive direction. While oil price continues to strengthen its rally, there is little reaction from Canadian Dollar so far. Stocks are also range bound while 10-year yield hover around 1.6 handle. Nevertheless, volatility might start to come back with US ADP employment and tomorrow's non-farm payrolls. Technically, we'd maintain that more downside is in favor in both Dollar and Yen for now, unless some levels are broken decisively. The levels include 1.4090 support in GBP/USD, 0.7673 support in AUD/USD, 0.9046 resistance in USD/CHF and 1.2201 resistance in USD/CAD. As for Yen pairs, the levels are 132.51 support in EUR/JPY, 153.81 support in GBP/JPY and 89.55 support in CAD/JPY. In Asia, at the time of writing, Nikkei is up 0.49%. Hong Kong HSI is down -0.43%. China Shanghai SSE is up 0.39%. Singapore Strait Times is up 0.15%. Japan 10-year JGB yield is up 0.0039 at 0.083. Overnight, DOW rose 0.07%. S&P 500 rose 0.14%. NASDAQ rose 0.14%. 10-year yield dropped -0.024 to 1.591. |
