Dollar is trying to extend this week's recovery in Asian session, as focus turns to non-farm payrolls reports. Whether Fed would start tapering asset purchases by the end of the year, or earlier, would very much depend on the job data in Q3. Elsewhere, Aussie is trading a touch softer after dovish comments from RBA governor. Swiss Franc and Yen also turned softer as US stocks made new record high overnight. Technically, to judge Dollar's underlying strength, we'd prefer to see firm break of 110.58 resistance in USD/JPY, 0.9116 resistance in USD/CHF, and to a lesser extent 1.2605 resistance in USD/CAD (which could be affected by Canadian job data too). Additionally, we'd also prefer to see break of 1789.42 support in gold to indicate completion of rebound from 1750.49, to double confirm Dollar buying. In Asia, at the time of writing, Nikkei is up 0.33%. Hong Kong HSI is down -0.01%. China Shanghai SSE is down -0.48%. Singapore Strait Times is up 0.14%. Japan 10-year JGB yield is up 0.006 at 0.019. Overnight, DOW rose 0.78%. S&P 500 rose 0.60%. NASDAQ rose 0.78%. 10-year yield rose 0.033 to 1.217. |
