Dollar was sold off broadly overnight and stays weak in Asian session. Markets well received Fed Chair Jerome Powell's message that tightening pace is going to slow ahead. While stocks also rebounded, Yen reacted more to falling benchmark treasury yields. As for the week, the greenback is now the worst performer. Euro follows as second worst on worries over the impact of gas crunch. Sterling is the strongest one, helped by buying against Euro. Australian Dollar is the second strongest. Technically, there are three levels to watch to confirm that Dollar selling is here to stay. Firstly, break of 1.0277 minor resistance in EUR/USD will resume the rebound from 0.9951. Further break of 1.0348 support turned resistance will raise the chance of a near term reversal. Secondly, firm break of 134.73 support in USD/JPY will indicate that larger correction is underway, for 126.35/131.34 support zone. Thirdly, break of 1745.21 resistance in Gold will also affirm the case of bullish reversal, after drawing support from 1682.60 cluster level. In Asia, Nikkei rose 0.32%. Hong Kong HSI is down -0.42%. China Shanghai SSE is up 0.46%. Singapore Strait Times is up 0.34%. Japan 10-year JGB yield is up 0.010 at 0.205. Overnight, DOW rose 1.37%. S&P 500 rose 2.62%. NASDAQ rose 4.06%. 10-year yield dropped -0.053 to 2.734. |
