 Amid the backdrop of surging treasury yields, Dollar has pressed on, extending its recent rally. The mounting sentiment of risk aversion has provided additional tailwinds for the greenback, especially after the DOW experienced its sharpest decline since March. For now, Yen emerges as the day's runner-up in strength, shadowed closely by Canadian Dollar. Conversely, Australian and New Zealand Dollars trail behind. Euro and Sterling are holding their ground in a muddled middle, their positions buffered to some extent by Swiss Franc's selloff. From a technical standpoint, Dollar's might against commodity currencies appears to be held in check. For the greenback to truly showcase its dominance, it would necessitate AUD/USD to decisively break 0.6356 support level. Similarly, NZD/USD would have to pierce 0.5858 support to reinitiate its recent down trend. At the same time, USD/CAD will need to break through 1.3548 resistance to confirm complete of its near term pull back from 1.5693. Attention is now on whether the Dollar can achieve these milestones before the close of September. In Asia, at the time of writing, Nikkei is down -0.18%. Hong Kong HSI is up 0.54%. China Shanghai SSE is up 0.19%. Singapore Strait Times is down -0.82%. 10-year JGB yield is down -0.001 at 0.745. Overnight, DOW dropped -1.14%. S&P 500 dropped -1.47%. NASDAQ dropped -1.57%. 10-year yield rose 0.016 to 4.558. |
