Selloff in Yen and Swiss Franc is still the main theme today even though US and Germany benchmark yields are retreating slightly. Australia was only lifted very briefly by the larger than expected rate hike by RBA. Though, Aussie is maintaining gains against Kiwi, which is the worst performing one for the day. On the other hand, Dollar, Canadian, and Sterling are the stronger ones while Euro is mixed. Technically, USD/CHF's break of 0.9763 minor support argues that pull back from 1.0063 has completed. Stronger rebound would be seen back to retest this high. The question is whether the Franc's weakness is its own, or it's leading other European majors. Hence, eyes will be on 1.0626 minor support in EUR/USD and 1.2457 minor support in GBP/USD. In Europe, at the time of writing, FTSE is down -0.24%. DAX is down -1.12%. CAC is down -1.07%. Germany 10-year yield is down -0.0081 at 1.315. Earlier in Asia, Nikkei rose 0.10%. Hong Kong HSI dropped -0.56%. China Shanghai SSE rose 0.17%. Singapore Strait Times rose 0.15%. Japan 10-year JGB yield rose 0.0043 to 0.250. |
