Selloff in the Japan Yen continued this week and intensified in Asian session today. The move came as global benchmark treasury yields powered up, including those in the US, Germany and UK. For now, commodity currencies are the stronger ones for, followed closely by Dollar. European majors are generally weak. Technically, Canadian Dollar appears to be leading the race for now, with help from WTI crude oil which is staying at around 108. In particular, AUD/CAD is extending the decline from 0.9514. Further fall is expected as long as 0.9357 support turned resistance holds, for 0.9169 support. Reactions from there would decide while whole rebound from 0.8906 has completed too. At the same time, attention will be on whether USD/CAD would break through 1.2519 minor support to confirm underlying strength of CAD, for the near term at least. In Asia, at the time of writing, Nikkei is up 0.60%. Hong Kong HSI is down -1.89%. China Shanghai SSE is up 0.12%. Singapore Strait Times is up 0.57%. Japan 10-year JGB yield is up 0.0021 at 0.247. Overnight, DOW dropped -0.11%. S&P 500 dropped -0.02%. NASDAQ dropped -0.14%. 10-year yield rose 0.034 to 2.862. |
