Consolidative trading continues in the forex markets in general. Canadian Dollar spiked higher after more hawkish than expected BoC overnight, but there was no follow through buying. BoJ's decision to stand pat triggered little reactions. Expectation of an earlier RBA rate hike intensified after the central bank let target yield surges sharp today. Yet, Aussie basically shrugs off the news. Focus will now turn to ECB meeting today. Technically, broadly speaking, near term outlook in Yen and, to a lesser extent, Dollar remain bearish. Focus is mainly on the timing of breakout. For that, we'll pay more attention to related commodity currency pairs. In particular 0.7545 temporary top in AUD/USD, 1.2286 temporary low in USD/CAD, 86.24 temporary top in AUD/JPY and 93.00 temporary top in CAD/JPY. Break of these level could lead the return of selling in Yen and Dollar. In Asia, at the time of writing, Nikkei is down -0.95%. Hong Kong HSI is down -0.09%. China Shanghai SSE is down -0.93%. Singapore Strait Times is down -0.39%. Japan 10-year JGB yield is down -0.0058 at 0.092. Overnight, DOW dropped -0.74%. S&P 500 dropped -0.51%. NASDAQ closed flat. 10-year yield dropped notably by -0.090 to 1.529. |
