Australian Dollar leads other commodity currencies higher today on improved market sentiments. Asian stocks are trading generally higher, following the record close in DOW overnight. Investors found some comfort from the soft yet acceptable 10-year auctions. Dollar, Yen and Swiss Franc turn softer as a result. Now, focus will turn to ECB rate decision, economic projections, and more importantly, comments on recent surge in long term yields. Technically, on focus today is on the extend of Dollar's pull back. Break of 1.1951 resistance in EUR/USD, would argue that the pair has bottomed in the near term. Similarly, break of 1740.32 resistance gold will also indicate short term bottoming, adding to pressure on Dollar in general. Another focus would be on commodity Yen crosses. For example, AUD/JPY could have a test on 84.93 resistance today if the improvement in sentiments continue. Break there will resume whole up trend form 59.89. In Asia, Nikkei closed up 0.60%. Hong Kong HSI is up 1.21%. China Shanghai SSE is up 2.13%. Singapore Strait Times is up 0.91%. Japan 10-year JGB yield is down -0.0248 at 0.101, back at around 0.1 handle. Overnight, DOW rose 1.46%. S&P 500 rose 0.60%. NASDAQ dropped -0.04%. 10-year yield dropped -0.026 to 1.520. |
