 New Zealand and Australian Dollar trade broadly higher on the back on improving market sentiment. Asia indexes are tracking US stocks higher. On the other hand, Dollar continues to extend its near term correction, in particular against commodity currencies. Yen is also under some pressure. Meanwhile, European majors are mixed for now, waiting for UK inflation data today and ECB rate decision tomorrow. Technically, DOW's strong close overnight suggests that rebound from 29653.29 is ready to resume. Sustained trading above 55 day EMA (now at 31837.57) will add to the case that correction from 36952.65 is over. Further rise would then be seen back to 33272.34 resistance first, and break there will open up more rally back to 35392.22/36952.65 resistance zone. Such development could happen rather quickly. And, if happens, would add more fuel to the selloff in Dollar and Yen. In Asia, at the time of writing, Nikkei is up 2.55%. Hong Kong HSI is up 1.57%. China Shanghai SSE is up 0.75%. Singapore Strait Times is up 1.18%. Japan 10-year JGB yield is up 0.0048 at 0.247. Overnight, DOW rose 2.43%. S&P 500 rose 2.76%. NASDAQ rose 3.11%. 10-year yield rose 0.059 to 3.019. |
