 Australian Dollar surges broadly after surprised RBA rate hike. Tightening bias is also maintained, so more hike(s) could still be in the pipeline. The move in Aussie is taking other commodity currencies higher. Now, a focus will be on whether BoC would follow and surprises the markets too. At the other end of the spectrum, Dollar is sold off broadly today. Yen is following as the second worst and then Euro. Swiss Franc and Sterling are mixed. Technically, some attention will also be on Dollar in the early part of the week. Near term price actions in EUR/USD, USD/CHF, USD/JPY and even GBP/USD are displaying corrective structures. That is, the greenback's rally against European majors and Yen shouldn't be over yet. Break of any of 1.0634 support in EUR/USD, 1.2306 support in GBP/USD, 0.9146 resistance in USD/CHF and 140.90 resistance in USD/JPY could be the early signal of resumption in Dollar's rise. In Asia, at the time of writing, Nikkei is up 0.69%. Hong Kong HSI is up 0.51%. China Shanghai SSE is up 0.05%. Singapore Strait Times is up 0.04%. Japan 10-year JGB yield is down -0.0040 at 0.430. Overnight, DOW dropped -0.59%. S&P 500 dropped -0.20%. NASDAQ dropped -0.09%. 10-year yield rose 0.0002 to 3.693. |
