Following strong rally in US stocks and treasury yield overnight, Yen is trading broadly lower today, together with Swiss Franc. Yen is also the worst performing one for the week, followed by Euro. On the other hand, Canadian Dollar is the winner for the week, followed by Aussie. Focus will turn to US job data today. Upside surprise there could prompt further rally in treasury yield and thus, pressure Yen further. But the reaction in other currencies would depend on the reactions in overall stock market movements. Technically, AUD/JPY is now eyeing 82.01 resistance with this week's rally. Firm break there will firstly resume the rebound from 77.88. Secondly, it will affirm the case that correction from 85.78 has completed. Further rise would be seen to 100% projection of 77.88 to 82.01 from 78.82 at 82.95. Decisive break of 82.95 would probably bring upside acceleration towards 161.8% projection at 85.50, which is close to 85.78 high. Such development could happen if both stocks and yields surge after NFP today. In Asia, at the time of writing, Nikkei is up 1.69%. Hong Kong HSI is down -0.26%. China Shanghai SSE is up 0.33%. Singapore Strait Times is up 0.11%. Japan 10-year JGB yield is up 0.0043 at 0.082. Overnight, DOW rose 0.98%. S&P 500 rose 0.83%. NASDAQ rose 1.05%. 10-year yield rose 0.0047 to 1.571. |
