Dollar recovers mildly in Asian session today as selling lost some momentum. On the other hand commodity currencies are turning softer. Australian Dollar continues to be weighed down by surging coronavirus cases, as the State Premier also warned of "lots of pressures" on hospitals. But overall, traders are starting to turn cautious ahead of Jackson Hole Symposium and month end. Technically, we'd reiterate that despite this week's pull back in Dollar, near term support levels were not broken yet. The levels include 1.1804 resistance in EUR/USD, 1.3785 minor resistance in GBP/USD, 0.7288 support turned resistance in AUD/USD, 0.9098 support in USD/CHF, 109.10 support in USD/JPY. USD/CAD looks more committed with the break of 4 hour 55 EMA, but it's still holding well above 1.2421 structural support. Near term outlook in Dollar is at least not bearish in general. In Asia, at the time of writing, Nikkei is down -0.08%. Hong Kong HSI is down -0.36%. China Shanghai SSE is up 0.34%. Singapore Strait Times is up 0.06%. Japan 10-year JGB yield is flat at 0.020. Overnight, DOW rose 0.09%. S&P 500 rose 0.15%. NASDAQ rose 0.52%. 10-year yield rose 0.035 to 1.290. |
