Dollar trades generally higher today as rebound continues. Yen and Swiss Franc are following as the next strongest so far. Commodity currencies are generally lower as led by Australian Dollar. The picture might imply risk aversion but there is no clear selloff in Asian markets. At the time of writing, Asian stocks are just mixed, with Japan on holiday. It remains to be seen if some traders are jumping out of risk markets early, on pandemic concerns. Japan reported on Sunday a new coronavirus variant from Brazilian travelers. The UK variant was found in Northern Mexico already. China recorded the biggest daily infections in over five months. But there's no information yet on whether the coronavirus cases found in China was the same as the one in Wuhan a year ago, which started the pandemic. Or, some new variants are re-entering into China. Technically, EUR/USD's break of 1.2214 support last week was a sign of bottoming in Dollar. USD/JPY's break of 103.89 resistance was another. Focuses will be on 1.3428 support in GBP/USD, 0.7641 support in AUD/USD. 0.8918 resistance in USD/CHF and 1.2797 resistance in USD/CAD. In Asia, currently, Hong Kong HSI is up 0.72%. China Shanghai SSE is down -0.23%. Singapore Strait Times is down -0.32%. Japan is on holiday today. |