 In the run-up to the close of the first half, forex markets appear to be treading water in today's Asian session. Market responses to China's lackluster PMI data have been tepid, while Yen remains largely unfazed by Japan's industrial production figures and Tokyo's CPI. Asian indexes are mixed with mild selloff in Nikkei. Dollar and Euro are neck-and-neck in the race for this week's top spot, with the final outcome possibly hinging on upcoming Eurozone CPI flash and US PCE inflation data. Commodity currencies, on the other hand, are languishing at the bottom of the chart, with Kiwi underperforming against its Australian and Canadian counterparts. Sterling, Swiss Franc, and Yen are stuck in a mixed performance amidst the fray. Technically, US 10-year yield's breach of 3.854 short term top overnight is worth a mention. Rise from 3.253 might be finally resuming. A strong close above the resistance today will solidify near term bullishness, and the case that whole correction from 4.333 has completed with three waves down to 3.253. This development could pave the way for further rally in the coming week, especially with a slew of high-impact US data on the horizon, and potentially providing a boost for USD/JPY. The lingering question for USD/JPY is when Japan might decide to step in with intervention again. In Asia, at the time of writing, Nikkei is down -0.54%. Hong Kong HSI is up 0.02%. China Shanghai SSE is up 0.78%. Singapore Strait times is up 0.03%. Japan 10-year JGB yield is up 0.0131 at 0.397, getting close to 0.4 handle again. Overnight, DOW rose 0.80%. S&P 500 rose 0.45%. NASDAQ closed flat. 10-year yield rose 0.144 to 3.854. |
