 Commodity currencies and Sterling recover broadly as sentiments in Asian markets stabilized, after mixed economic data. In particular, Nikkei is trading up over 2% at the time of writing, with help from strong PMI manufacturing. On the other hand, Yen turn softer together with Swiss Franc, Dollar and Euro. But majority of major pairs and crosses are bounded inside Friday's range, suggesting movements are relatively limited. Technically, commodity Yen crosses will be worth a watch this week. In similar outlook to stock indices, despite deep pull back in AUD/JPY and NZD/JPY last week, there is no clear indication of trend reversal yet. As long as 80.91 support in AUD/JPY and 75.56 support in NZD/JPY holds, we'd still expect the near term up trend to resume sooner rather than later. However, firm break of these levels, in tandem with deeper decline in stocks, could confirm the start of a medium scale correction in risk sentiments. In Asia, currently, Nikkei is up 2.09%. Hong Kong HSI is up 1.20%. China Shanghai SSE is up 0.52%. Singapore Strait Times is up 0.88%. Japan 10-year JGB yield is down -0.0002 at 0.157. |
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