 The financial markets are all very steady today, awaiting FOMC rate decision. A 75bps hike a done deal, and the key is whether Fed Chair Jerome Powell would signal slower tightening pace ahead. For now, Dollar is the weaker one for today, followed by Euro and Sterling. On the other hand, Yen is the stronger one together with Aussie and Kiwi. But of course, such picture could change drastically after FOMC. Post FOMC press conference market movements, in stocks, bonds and FX, should largely be driven by risk sentiment. AUD/USD has the potential to have larger moves than other Dollar pairs. Technically, break of 0.6355 minor support will signal that corrective rebound from 0.6169 has completed, and selloff could intensify through this low quickly. On the other hand, firm break of 0.6530 will add to the case of larger reversal, and bring stronger rise to 0.6698/6915 resistance zone. In Europe, at the time of writing, FTSE is down -0.08%. DAX is flat. CAC is down -0.10%. Germany 10-year yield is up 0.016 at 2.147. Earlier in Asia, Nikkei dropped -0.06%. Hong Kong HSI rose 2.41%. China Shanghai SSE rose 1.15%. Singapore Strait Times rose 0.34%. Japan 10-year JGB yield dropped -0.0052 to 0.247. |
