Commodity currencies remain in the driving seat for the week, with Aussie having a slight upper hand over Loonie. Both are supported by firmer risk sentiments, as well as expectations for more tightening. Yen is the runaway loser for the week and looks set to resume broad based down trend. Dollar is mixed for now, a little on the soft side, in reaction to risk sentiment. Focus will turn to non-farm payroll report today, and the reaction in the stock markets would be the main driver in FX. Technically, CAD/JPY's break of 102.93 resistance confirms up trend resumption. Next target is 61.8% projection of 89.21 to 102.93 from 97.78 at 106.25. AUD/JPY is also making some progress by breaking 94.00 resistance. Focus will turn to 95.73 high in AUD/JPY and break will confirm up trend resumption too. Such developments, if happen, should be accompanied by extended rebound in stocks, and probably treasury yields too. In Asia, Nikkei closed up 1.19%. Hong Kong and China are on holiday. Singapore Strait Times is up 0.13%. Japan 10-year JGB yield is down -0.0076 at 0.238. Overnight, DOW rose 1.33%. S&P 500 rose 1.84%. NADSAQ rose 2.69%. 10-year yield dropped -0.0018 to 2.913. |
