Dollar's extended selloff continues today, showing no clear signs of a turnaround. The slump comes on the back of the release of PPI and jobless claims data, which failed to inspire optimism among Dollar bulls. Meanwhile, global risk-on sentiment is prevailing, with noticeable rally in stock markets and corresponding dip in treasury yields. Japanese Yen is following behind the greenback as the second weakest currency, retracing its recent rally against other major currencies. Contrasting the plight of Dollar, Aussie emerges as the standout performer of the day, with upside acceleration. It's is riding on the coattails of a robust rebound in copper prices, and seemingly undeterred by dismal China trade data. New Zealand Dollar, while trailing Aussie, holds its position as the second strongest currency of the day, although Canadian Dollar languishes. European majors are presenting a mixed bag, but Swiss Franc is still holding the position as the top performer for the week. Technically, Copper's strong rally this week argues that pull back from 3.9501 has completed at 3.6706. Retest of 3.9501 should be seen in the near term. Firm break there will firstly confirm resumption of the rise from 3.5393. Secondly, that should solidify the case that fall from 4.3556 has completed with three waves down to 3.5393. With this as background, rise from 3.5393 should extend to 4.1743/3556 resistance zone, even as the second leg of a medium term corrective pattern. If released, the move should be accompanied by AUD/USD's rally towards 0.7156 resistance. In Europe, at the time of writing, FTSE is up 0.36%. DAX is up 0.73%. CAC is up 0.87%. Germany 10-year yield is down -0.1044 at 2.443. Earlier in Asia, Nikkei rose 1.49%. Hong Kong HSI rose 2.60%. China Shanghai SSE rose 1.26%. Singapore Strait Times rose 1.99%. Japan 10-year JGB yield dropped -0.0112 to 0.468. |
