Asian markets manifested mild risk-off sentiments today, with Nikkei weighing down the broader region. As Japanese investors made their way back from an extended holiday weekend, notable sell-off in chip stocks took place. This reaction was prompted by reports that Taiwan's premier chipmaker, TSMC, had requested its major vendors to postpone deliveries. Adding to the mix, there's speculation that Japanese investors are aligning their portfolios in anticipation of a possible hawkish shift by BoJ set for this Friday. However, before that unfolds, other significant determinants remain, particularly FOMC rate decision and economic forecasts due tomorrow. As of now, Canadian Dollar stands out as the dominant performer, with market participants keenly waiting on Canada's CPI data, wherein another uptick in headline figures is widely anticipated. The prospect of another rate hike by the BoC later this year largely depends on the magnitude and endurance of inflationary forces, with a special focus on the services sector. Meanwhile, Dollar attempts a rally, though it lacks firm backing. Euro and Yen are trailing as the day's laggards, with Sterling not far behind. Australian Dollar portrays a mixed picture post the release of RBA minutes. Following up on Gold, the break of 1930.56 resistance is a tentative sign that rise from 1884.83 is resume to resume. Further rally is now mildly in favor to 1952.82 resistance first. Firm break there will target 100% projection of 1884.83 to 1952.82 from 1900.81 at 1968.80 in the near term. Nevertheless, break of 1922.18 minor support will dampen this bullish case. Critical insights into Gold's next direction could emerge in the next 48 hours, which will also serve to validate any movements in Dollar, as is traditionally observed. In Asia, Nikkei closed down -1.07%. Hong Kong HSI is down -0.16%. China Shanghai SSE is down -0.15%. Singapore Strait Times is down -0.65%. Japan 10-year JGB yield is up 0.0077 at 0.718. Overnight, DOW rose 0.02%. S&P 500 rose 0.07%. NASDAQ rose 0.01%. 10-year yield dropped -0.003 to 4.319. |
