Australian Dollar rises broadly after RBA surprised the markets by a larger than expected 50bps rate hike. It's now overpowering the strong Canadian and US Dollars. On the other hand, Yen's weakness persists on rising benchmark treasury yields in the US and Europe. Sterling is turning soft after Prime Minister Boris Johnson won the confidence vote while Swiss Franc is also weak. Euro, on the other hand, is rather resilient, awaiting ECB later in the week. Technically, Aussie is displaying clear strength in the upside breakouts in AUD/JPY and AUD/NZD. But it's still a bit sluggish against others. To be specific, AUD/USD will need to break through 0.7282 temporary top to resume the rebound from 0.6828. Also, AUD/USD will need to break through 0.9144 temporary top to resume the rebound from 0.8916. Otherwise, it just one of the strongest at best, not the strongest. In Asia, the time of writing, Nikkei is up 0.50%. Hong Kong HSI is down -0.12%. China Shanghai SSE is up 0.48%. Singapore Strait Times is down -0.22%. Japan 10-year JGB yield is up 0.0008 at 0.246. Overnight, DOW rose 0.05%. S&P 500 rose 0.31%. NASDAQ rose 0.40%. 10-year yield rose 0.081 to 3.035. |
