Trading continue to be relatively subdued this week so far. While Dollar weakened overnight, losses were very limited. The greenback is indeed recovering mildly in Asian session. Australian Dollar also received little lift from strong business conditions data. Gold breached 1900 handle, but lacks the conviction to extend near term rebound. WTI crude oil also struggles to get through 70 handle. Technically, current development suggests that Dollar's down trend is still intact, and should resume sooner or later. But some near term levels need to be taken out first. The levels include 1.2269 resistance in EUR/USD, 0.7772 resistance in AUD/USD, 1.4248 resistance in GBP/USD, 0.8929 support in USD/CHF and 1.2005 support in USD/CAD. Preferably, we'd also want to see break of 108.55 in USD/JPY to confirm broad based weakness in Dollar, when the selloff resumes. In Asia, at the time of writing, Nikkei is down -0.06%. Hong Kong HSI is down -0.35%. China Shanghai SSE is down -0.51%. Singapore Strait Times is down -0.28%. Japan 10-year JGB yield is down -0.003 at 0.077. Overnight, DOW dropped -0.36%. S&P 500 dropped -0.08%. NASDAQ rose 0.49%. 10-year yield rose 0.009 to 1.569. |
