 Asian markets began the trading week on a high note, largely driven by a rise in Japan's Nikkei index, which was buoyed by encouraging results from BoJ Tankan Survey. Meanwhile, market participants seemed to overlook weak data from China's manufacturing sector. Australian and New Zealand dollars led the other currencies, experiencing broad gains, closely trailed by Canadian Dollar. Japanese Yen and the Swiss Franc, however, traded with a weak undertone. Euro, Dollar, and British Pound exhibited mixed trading for the time being. Although US traders may adopt a more relaxed stance due to the long July 4th weekend, trading may not be entirely subdued. RBA's interest rate decision, scheduled for tomorrow, could indeed stir up some market volatility. Besides, the week is packed with significant economic data releases, including ISM indexes and the much-anticipated non-farm payroll report. From a technical analysis perspective, the AUD/JPY pair will be of particular interest in the next 24 hours. For now, deeper decline is in favor as long as 96.48 minor resistance holds. In case of another fall, the focus is on whether it could depend 38.2% retracement of 90.24 to 97.66 at 94.82. Nevertheless, break of 96.48 would likely prompt stronger rally back to retest 97.66 high. |
