Dollar trades broadly lower this week so far, following the strong record close in stocks overnight. Nevertheless, Yen and, to a larger extent, Swiss Franc are not following the selloff much. Commodity currencies are trading broadly higher together with Sterling. Aussie yawns RBA rate decision, which provided nothing new to the markets. Technically, the case is building up for broad based selling in Dollar. EUR/USD's break of 1.1804 minor resistance suggests short term bottoming. More importantly, that's the first sign that whole correction from 1.2348 has completed. AUD/USD is now pressing 0.7662 minor resistance while USD/CAD is also pressing 1.2519 minor support. Break of these levels will solidify Dollar's weakness. Also, attention would also be on whether Gold could break through 1755.29 resistance to complete a double bottom reversal pattern (1676.65, 1677.69). In Asia, Nikkei is currently down -1.13%. Hong Kong is still on holiday. China Shanghai SSE is down -0.17%. Singapore Strait Times is down -0.33%. Japan 10-year JGB yield is down -0.0118 at 0.109, but stays above 0.1 handle. Overnight, DOW rose 1.13%. S&P 500 rose 1.4%. NASDAQ rose 1.67%. 10-year yield rose 0.006 to 1.720. |
