Fed Chair Jerome Powell's lack of concrete hint on action against rising nominal rates sent treasury yield higher, and stocks lower overnight. Dollar rode on risk aversion and jumped sharply higher. Nevertheless, the greenback's rally was concentrated against Euro, Swiss Franc and Yen only. Sterling, Canadian, and Australian are indeed still rather resilient. In particular, Canadian Dollar was support by resumption of oil price rally after OPEC rolled over production cuts. Now, focus will turn to non-farm payrolls from the US later in the day. Technically, rises in USD/CHF and USD/JPY are both accelerating upwards. EUR/USD's breach of 1.1951 support also suggests resumption of corrective fall from 1.2348 as expected. Attention is turned to other Dollar pairs. Levels to watch included 1.3828 support in GBP/USD, 0.7691 temporary low in AUD/USD and 1.2742 temporary top in USD/CAD. As long as these levels hold, Dollar's rally is considered just "half-hearted". In Asia, currently, Nikkei is down -0.96%. Hong Kong HSI is down -0.30%. China Shanghai SSE is down -0.34%. Singapore Strait Times is up 0.16%. Japan 10-year JGB yield is down -0.029 at 0.111. Overnight, DOW dropped -1.11%. S&P 500 dropped -1.34%. NASDAQ dropped -2.11%. 10-year yield rose 0.080 to 1.550. |
