Dollar drops notably in early US session after consumer inflation data. Headline CPI was steady while core CPI slowed a little. At least, inflation hasn't been worsening from Fed's "transitory rhetoric". US stock futures also jump, probably on reduced concerns over monetary tightening. New Zealand and Australian Dollars are currently the strongest, followed by Swiss Franc. Technically, as discussed in prior reports, Dollar's prior rally were mainly against Euro, Swiss Franc and Yen. Indeed, GBP/USD, AUD/USD and USD/CAD are all holding in familiar range. Focus will now turns to 1.3982 resistance, 0.7443 resistance and 1.2421 support, respectively, as Dollar is turning soft. Additionally, we'll keep an eye on 81.64 resistance in AUD/JPY. Break will resume the rebound from 79.82, and signal a comeback in the Aussie. In Europe, at the time of writing, FTSE is up 0.46%. DAX is down -0.02%. CAC is up 0.26%. Germany 10-year yield is down -0.0063 at -0.460. Earlier in Asia, Nikkei rose 0.65%. Hong Kong HSI rose 0.20%. China Shanghai SSE rose 0.08%. Singapore Strait Times dropped -0.85%. Japan 10-year JGB yield rose 0.0171 to 0.042. |
