 Dollar faces renewed selling pressure as Asian markets exhibit a positive tone, following the overnight rebound in US stocks. The question remains: is the banking crisis over? It seems likely, at least temporarily, as major banks rushed to support First Republic and the situation surrounding Credit Suisse stabilized. If Wall Street's rebound continues to gain momentum, the greenback could face further downside risk today. However, given that FOMC rate decision is less than a week away, investors may opt to take profits and adopt a more cautious stance in the meantime. Currently, Australian Dollar leads as the best performer for the week, closely followed by New Zealand Dollar. Both currencies appear to be gaining momentum. Despite struggling to extend earlier gains, Japanese Yen remains the third strongest currency. Swiss Franc, on the other hand, is the weakest performer, followed by Dollar. The post-ECB selloff in Euro didn't last but it lacks momentum for rebound, and it's now the third weakest. Both the British Pound and the Canadian Dollar are mixed for the week. Technically, Aussie is worth a watch before the weekly. AUD/USD is now pressing 0.6715 resistance and firm break there will indicate short term bottoming at 0.6563. On the other hand, EUR/AUD is holding just slightly above 1.5826 support. Firm break of this support will indicate short term topping 1.6200. In this case, deeper decline would be seen back to 1.5650 resistance turned support and possibly below. Let's see how Aussie goes. In Asia, Nikkei rose 1.20%. Hong Kong HSI is up 1.12%. China Shanghai SSE is up 0.58%. Singapore Strait Times is up 0.67%. Japan 10-year JGB yield is down -0.0062 at 0.291. Overnight, DOW rose 1.17%. S&P 500 rose 1.76%. NASDAQ rose 2.48%. 10-year yield rose 0.093 to 3.585. |
