 Yen trades broadly lower today, followed by Dollar, as Asian markets recovered broadly. China's Shanghai SSE composite leads the way by gaining 1.9% and breaches 2800 handle. It looks like some solid support was obtained between 2016 low at 2638 and 2700 psychological. Current momentum warrants a near term rebound which would likely support other Asian markets too. Nikkei also closed higher by 1.21% at 22052.18. Receding risk aversion is support the Australian Dollar, which is so far trading as the strongest one. Euro follows as the second strongest. Some volatility is seen in Sterling on Brexit jitters. Canadian Dollar also extends recent rebound on anticipation of a BoC rate hike later in the week. Technically, the immediate level the watch today is 1.3067 in USD/CAD. Firm break will at least extend the pull back from 1.3385 to channel support at 1.2825. That will also raise the chance of medium term reversal, but it's too early to tell. 0.9855 support in USD/CHF, if broken, will bring Swiss Franc into the rally party against Dollar. Also, break of 130.33 resistance in EUR/JPY will be a solid indication of reversal of the fall from 137.49. |
