Forex markets are showing unremarkable activity in today's Asian session, with major currency pairs and crosses largely contained within yesterday's trading range. The mood this week has been one of indecision, with sporadic movements failing to evolve into sustained trends. Despite China's intervention to bolster Yuan, the impact was fleeting. Similarly, stronger-than-expected manufacturing data seemed to have little lasting effect on market dynamics. All eyes are now on today's US Non-Farm Payroll data to see if it can be a catalyst for more enduring shifts. On weekly performance metric, Australian Dollar has been the star, followed closely by New Zealand Dollar and British Pound. Conversely, Dollar sits at the bottom of the performance list, trailed by Swiss Franc, Euro, the Japanese Yen. This composition hints at a risk-on sentiment prevailing in the markets, a mood underscored by a rebound in major US stock indexes a significant retraction in benchmark yields. One noteworthy outlier in financial markets has been Bitcoin, which saw a sharp rally to 28146 earlier this week only to relinquish those gains in an overnight selloff. The abrupt reversal followed news that US Securities and Exchange Commission has postponed decisions on approving spot Bitcoin exchange-traded funds from firms like Invesco, WisdomTree, and Valkyrie. Technically, rejection by 55 D EMA is a bearish sign, suggesting that fall from 31815 is not over yet. The key level now appears to be on 24739 support. Medium term rise from 15452 could still extend higher at a later stage as long as this support holds. Decisive break below this level, however, could open the door to a broader bearish reversal, potentially weighing down sentiment in equities markets, particularly NASDAQ. In Asia, at the time of writing, Nikkei is up 0.41%. China Shanghai SSE is up 0.39%. Japan 10-year JGB yield down -0.0150 at 0.632. Overnight, DOW dropped -0.48%. S&P 500 dropped -0.16%. NASDAQ rose 0.11%. 10-year yield dropped -0.025 to 4.093. |
