Australian Dollar dips broadly after RBA sounds surprisingly cautious regarding raising interest rates. But loss is so far very limited, as supported by improving market sentiment following strong rebound in US stocks overnight. Dollar is the second weakest, continuing to pare recent gains while Yen is also heading lower. Euro is currently a stronger one for the week, as supported by buying in crosses, in particular against Sterling and Swiss Franc. Technically, there is no clear sign of a larger reversal in Dollar yet, despite current retreat. Levels to watch include 1.1299 minor resistance in EUR/USD, 1.3523 minor resistance in GBP/USD, 0.7089 minor resistance in AUD/USD, 0.9243 minor support in USD/CHF and 114.46 minor support in USD/JPY. More upside in Dollar would remain in favor for the short term if these levels remain intact. In Asia, at the time of writing, Nikkei is up 0.26%. Japan 10-year JGB yield is up 0.0015 at 0.177. Hong Kong, China and Singapore are on Lunar New Year holiday. Overnight, DOW rose 1.17%. S&P 500 rose 1.89%. NASDAQ rose 3.41%. 10-year yield closed flat at 1.782. |
