Australian Dollar rebounds broadly after the larger than expected rate hike by RBA, and takes up New Zealand Dollar too. But there is no clear follow through buying yet. Swiss Franc is currently the weakest one for the day, followed by Dollar and Yen. Apparently, overall development suggests steady risk sentiment, but that may not last long. Euro and Sterling are mixed, together with Canadian. Technically, for Aussie to confirm its underlying strength, some levels need to be taken out with conviction. The levels include 0.7228 minor resistance in AUD/USD, and 1.4682 minor support in EUR/AUD. Otherwise, overall tone in Aussie will remain bearish and selloff could come back any time soon. In particular, Aussie would be back in disadvantage if US 10-year yield could break through 3% decisively, and Germany 10-year yield could power through 1%. In Asia, at the time of writing, Hong Kong HSI is up 0.12%. Singapore Strait Times is up 0.65%. Japan and China are on holiday. Overnight, DOW rose 0.26%. S&P 500 rose 0.57%. NASDAQ rose 1.63%. 10-year yield rose 0.109 to close at 2.996, after breaching 3% to 3.002. |
