New Zealand Dollar surges broadly again today as decade high CPI reading prompted more speculations on RBNZ rate hikes. That somewhat helps stabilizes the selloff in Aussie and Loonie. On the other hand, Yen appears to be softening slightly as rally lost steam. Dollar, Euro and Sterling are mixed. As for the week, Kiwi is overwhelmingly the strongest one, but Loonie and Aussie are the worst performers so far. Technically, focus will stays on Dollar today, especially with retail sales data featured. USD/CAD's break of 1.2589 resistance suggests resumption of rally from 1.2005. But no corresponding movement is seen in other Dollar pairs yet. Based on this week's development elsewhere, we'd pay special attention to AUD/USD's reaction to 0.7413 key support level, which it's still defending. Sustained break there would indicate deeper medium term correction is underway, probably back to around 0.7. In Asia, Nikkei closed down -0.98%. Hong Kong HSI is up 0.31%. China Shanghai SSE is down -0.60%. Singapore Strait Times is up 0.41%. Japan 10-year JGB yield is up 0.0083 at 0.023. Overnight, DOW rose 0.15%. S&P 500 dropped -0.33%. NASDAQ dropped -0.70%. 10-year yield dropped -0.059 to 1.297, back below 1.3 handle. |
