Commodity currencies are generally weak in Asian session, together with Sterling. Stocks in Hong Kong and China are reacting negatively to joint sanctions by EU, UK, Canada and US over China's genocidal treatments of Uyghurs in the Xinjiang region. EU's action is seen as significant turning point in the relations with China, as it's the first sanction since Tiananmen Square massacre back in 1989. Nevertheless, outside of Hong Kong and China markets, Nikkei is just mildly down while Singapore Strait times is trading up. Back in the currency markets, Yen and Dollars are trading mildly higher for the moment, followed by Euro and Swiss Franc. Technically, AUD/USD should now be heading back to 0.7620 support as recovery from there finished at 0.7848. One focus today is EUR/AUD, which is now pressing a near term channel resistance (now at 1.5458). Sustained break there will raise the chance of near term bullish reversal and bring stronger rise to 1.5689 resistance for confirmation. In Asia, currently, Nikkei is down -0.32%. Hong Kong HSI is down -1.18%. China Shanghai SSE is down -1.19%. Singapore Strait Times is up 0.25%. Japan 10-year JGB yield is down -0.0016 at 0.080. Overnight, DOW rose 0.32%. S&P 500 rose 0.70%. NASDAQ rose 1.23%. 10-year yield dropped -0.048 to 1.684. |
