 New Zealand Dollar rises broadly in quiet markets today, after RBNZ delivered the 50bps rate hike as widely expected, clearing the doubt that it will follow RBA and opt for a smaller hike. Dollar remains the worst performer of the week, following strong risk rebound in stock markets, while yields weakened. Yen is the second weakest, only slightly better than Dollar. Sterling is so far the winner, continuing to reverse prior deep losses while Euro and Swiss France are also firm. Technically, a focus for now is whether Euro and Sterling could maintain upside momentum to solidify it as a trend. 4 hour RSI in EUR/JPY is dipping back from overbought region, suggesting that there may loss of upside momentum. Break of 140.35 minor support will suggest rejection by 145.62 high, to start the third leg of the consolidation pattern from there. In Asia, at the time of writing, Nikkei is up 0.36%. Hong Kong HSI is up 5.47%. Singapore Strait Times is up 0.35%. Japan 10-year JGB yield is up 0.0312 at 0.263. Overnight, DOW rose 2.80%. S&P 500 rose 3.06%. NASDAQ rose 3.34%. 10-year yield dropped -0.034 to 3.617. |
