 Yen is once again back under selling pressure today, with the selloff mainly concentrated against Swiss Franc, and to a lesser extent Euro. Risk-on sentiment, rising benchmark treasury yields, and the expectation of BoJ keeping policy ultra-loose will likely keep Yen weak for the time being. The only question is whether selling would intensify again. That might depend on market reactions to the development regarding US debt ceiling negotiations. Meanwhile, Australian and Canadian Dollar are following Yen as the next weakest. On the other hand, New Zealand Dollar is following Swiss Franc and Euro as the next strongest. Dollar and Sterling are mixed in the middle. Technically, AUD/USD might be ready to breakout from established range of 0.6563/6817 this week. The direction could very much depend on the next move in Copper. While Copper stabilized just ahead of 100% projection of 4.3556 to 3.8229 from 4.1743 at 3.6416, there is no sign for a sustainable bounce yet. Indeed, decisive break of 3.6416 could prompt downside acceleration towards 161.8% projection at 3.3124. That should most likely drag AUD/USD through 0.6563. However, firm break of 3.8229 would indicate near term bullish reversal, and help lift AUD/USD for a test on 0.6817 resistance at least. In Europe, at the time of writing, FTSE is up 0.03%. DAX is down -0.38%. CAC is down -0.32%. Germany 10-year yield is up 0.0270 at 2.452. Earlier in Asia, Nikkei rose 0.90%. Hong Kong HSI rose 1.17%. China Shanghai SSE rose 0.39%. Singapore Strait Times rose 0.27%. Japan 10-year JGB yield dropped -0.0197 to 0.387. |
