Dollar recovers mildly in quiet Asian session today, but it's bounded inside Friday's range except versus Canadian. The greenback will most probably wait until Fed Chair Jerome Powell's comment, after another 75bps this week, before taking another firm move. As for today, Euro is so far the firmer ones, follow by Yen. New Zealand Dollar is leading commodity currencies lower. Sterling and Swiss Franc are mixed. Technically, Dollar's selloff lost some momentum towards the end of the week. But for now, further decline will remain in favor. Levels to watch include 1.0118 minor support in EUR/USD, 0.9738 minor resistance in USD/CHF, 0.6858 minor support in AUD/USD and 1.2988 minor resistance in USD/CAD. As long as these levels hold, near term risks stay on the downside for the greenback. In Asia, at the time of writing, Nikkei is down -0.76%. Hong Kong HSI is down -0.75%. China Shanghai SSE is down -0.71%. Singapore Strait Times is up 0.32%. Japan 10-year JGB yield is down -0.0230 at 0.191, back below 0.2% handle. |
