 European majors are trading generally higher today, as led by Euro this time. In particular, Euro looks set to reclaim parity against Dollar with current rebound. On the other hand, commodity currencies are trading lower together with Yen. Aussie is under renewed selling pressure, as traders continue to assess RBA's smaller than expected rate hike. Meanwhile, Kiwi is also weak ahead of tomorrow's RBNZ rate decision. A 50bps is expected for RBNZ, but could they miss? Dollar is mixed for now, with traders continue to lighten up long position. The greenback will need some support from ISM services tomorrow and NFP on Friday, if it is to resume recent up trend. Technically, Gold is also worth a watch today, as it's heading back to 55 day EMA (now at 1718.59), which is close to medium term channel resistance. Sustained break there will confirm medium term bottoming at 1614.60, on bullish convergence condition in daily MACD. Strong rise would be seen to 38.2% retracement of 2070.06 to 1614.60 at 1788.58, even as a corrective rise. In Europe, at the time of writing, FTSE is up 2.04%. DAX is up 2.84%. CAC is up 3.35%. Germany 10-year yield is down -0.0487 at 1.864. Earlier in Asia, Nikkei rose 2.96%. Japan 10-year JGB yield dropped -0.0125 to 0.232. Singapore Strait Times rose 1.02%. China and Hong Kong were on holiday. |
