 Major Asia indexes trade mildly higher today but the forex markets are quiet. Trading will likely be subdued ahead with Swiss, France and Germany on bank holiday, while the US economic calendar is empty. But an eventful week will kick start with RBA rate decision tomorrow, followed by ECB on Thursday. Then the week would likely end on a strong note, in terms of volatility, with US CPI and Canada employment on Friday. Technically, AUD/JPY is a pair to watch for the next 24-hours. Currently, considering broad based weakness in Yen, the favored view is that correction from 95.73 has completed with three waves down to 87.28. Medium term up trend should be ready resume. Further rise is expected as long as 92.83 minor support holds and break of 95.73 high will confirm this bullish case. However, should RBA disappoint by delivering less than a 40bps hike, AUD/JPY could break through 92.83 to extend the corrective pattern from 95.73 with another falling leg. In Asia, at the time of writing, Nikkei is up 0.75%. Hong Kong HSI is up 1.32%. Chinas Shanghai SSE is up 0.89%. Singapore Strait Times is down -0.18%. Japan 10-year JGB yield is up 0.0054 at 0.242. |
