Australian Dollar trades generally lower today, after China announced to "indefinitely" suspended all activities under the China-Australia Strategic Economic Dialogue. But the spike on Aussie was relatively shallow and short-lived. Traders are quick to remember that the tariffs by China on some Aussie products didn't had much material impacts on the latter's export performance. Additionally, European Commission announced earlier this week to pause all efforts to promote the China comprehensive agreement on investment. Such developments also had little impact on Euro's exchange rate. Meanwhile, Sterling is mixed, awaiting BoE rate decision, and any hints on tapering of asset purchases. Technically, Aussie is still bounded in near term consolidations against Dollar, Euro and Yen. Another rise through 0.7815 resistance is in favor in AUD/USD with 0.7676 minor support intact. But we're not anticipating a break of 0.8006 high for the near term. EUR/AUD is also staying in range of 1.5250/5689, and the sideway consolidation could extend for a while. As for AUD/JPY, further rise to retest 85.43 is mildly in favor with 83.91 minor support intact. Though, current momentum doesn't warrant a break out from there yet. In Asia, at the time of writing, Nikkei is trading up 1.72%. Hong Kong HSI is up 0.17%. China Shanghais SSE is down -0.22%. Singapore Strait Times is up 0.26%. Japan 10-year JGB yield is down -0.0048 at 0.090. Overnight, DOW rose 0.29%. S&P 500 rose 0.07%. NASDAQ dropped -0.37%. 10-year yield dropped -0.008 to 1.584. |
