 Dollar falls broadly after ISM Manufacturing index indciates further deterioration in the sector. But loss is so far limited. Overall markets remain quiet. Swiss Franc and Yen persist are the softer performers. The Franc felt slight impact of Swiss CPI readings, which were lower than anticipated. However, market reaction remains mild, considering SNB's prior forecast of slowing inflation in the current year. The central bank's concern primarily lies in the potential for a resurgence in inflation thereafter. Meanwhile, Euro, Sterling, and Canadian Dollar remain steady, bounded within the range defined by Friday's trading. On the other side of the spectrum, Australian and New Zealand Dollars are showing minor strength. Volatility around Aussie is set to surge in the forthcoming Asian session as the market braces for RBA rate decision. It's a split verdict among market observers, who are equally divided on the likelihood of a rate hike or a pause by the central bank. With two market surprises already in its repertoire for this year, the RBA may not shy away from a third. Technically, NZD/JPY is trying to resume recent rally by breaking through 88.96 resistance. But there's a big question on whether it could power through 100% projection of 81.53 to 87.28 from 83.50 at 89.25. Rejection by this projection level, followed by break of 87.58 support, should confirm short term topping, and even reversal. But decisive break there will pave the way to 138.2% projection at 91.44. The next move could hinge on reaction to RBA. In Europe, at the time of writing, FTSE is down -0.04%. DAX is down -0.24%. CAC is down -0.07%. Germany 10-year yield is up 0.017 at 2.411. Earlier in Asia, Nikkei rose 1.70%. Hong Kong HSI rose 2.06%. China Shanghai SSE rose 1.31%. Singapore Strait Times is up 0.04%. Japan 10-year JGB yield is up 0.0068 at 0.406. |
