Yen and Dollar surged strongly overnight, but lost some momentum after on stocks recovered from initial steep selloff. Both are still firm with Asian markets in risk aversion mode. Canadian Dollar is currently the worst performing for the week, followed by Aussie. Focus will now turn to FOMC minutes for guidance on the next moves, in stocks, yields, and currencies. Technically, while the greenback jumped, some key near term levels remain intact for now. The levels include 1.1806 support in EUR/USD, 1.3730 support in GBP/USD, 0.7443 support in AUD/USD and 0.9273 resistance in USD/CHF. USD/CAD did breach 1.2485 resistance but there is no follow through buying yet. Additionally, Gold appears to have bottomed for the near term at 1750.49, on bullish convergence condition in 4 hour MACD, after breaking 1794.75 resistance. Dollar's weakness could still come back any time. In Asia, at the time of writing, Nikkei is down -1.26%. Hong Kong HSI is down -1.08%. China Shanghai SSE is up 0.36%. Singapore Strait Times is down -1.61%. Japan 10-year JGB yield is down -0.0011 at 0.035. Overnight, DOW dropped -0.60%. S&P 500 dropped -0.20%. NASDAQ rose 0.17%. 10-year yield dropped -0.061 to 1.370. |
