While the stock markets are steady, Aussie, Kiwi, and to a lesser extend Loonie, are trading generally lower. Decline in commodity and energy prices, on concerns over recession, appear to be weighing down on these currencies. Copper prices dropped to the lowest level since March 2021, while iron ore price has fallen 15% in 2 weeks. Yen is currently the stronger one for today, followed by Euro and Swiss Franc. Dollar and Sterling are mixed. Technically, Aussie would be a focus for the rest of the week. Sustained break of 1.5354 support turned resistance will be a strong sign of medium term bullish reversal. At the same time, firm break of 1.7884 resistance in GBP/AUD would likely set the stage for further rebound to 55 week EMA (now at 1.8134) at least. In Asia, at the time of writing, Nikkei is up 0.12%. Hong Kong HSI is up 0.96%. China Shanghai SSE is up 0.58%. Singapore Strait Times is up 0.62%. Japan 10-year JGB yield is down -0.0015 at 0.239. Overnight, DOW dropped -0.15%. S&P 500 dropped -0.13%. NASDAQ dropped -0.15%. 10-year yield dropped -0.151 to 3.156. |
