Trading continue to be relatively subdued as US and UK are both on holiday. Sterling is mildly softer, followed by Dollar, and Swiss Franc. On the other hand, Australian Dollar is strengthening mildly, ahead of RBA rate decision in the upcoming Asian session. It's highly unlikely for the central bank to alter the forward guidance that, the conditions of a rate hike is unlikely to be met until 2024 at the earliest. But it's still possible for the Aussie to get some hawkish surprise. Technically, 0.7673 support in AUD/USD would be the major focus in the upcoming house. As long as this support holds, we'd still expect rise from 0.7530 to resume sooner or later. Break of 0.7890 resistance should confirm underlying buying momentum for a test on 0.8004 high. Such development, if happens, should ideally be accompanied by break of 1.5723 minor support in EUR/AUD to bring deeper fall to 1.5418 support. In Europe, at the time of writing, DAX is down -0.28%. CAC is down -0.06%. Germany 10-year yield is up 0.0164 at -0.163. Earlier in Asia, Nikkei dropped -0.99%. Hong Kong HSI rose 0.09%. China Shanghai SSE rose 0.41%. Singapore Strait Times dropped -0.45%. Japan 10-year JGB yield dropped -0.0054 to 0.080. |
