Dollar is trying to recover today as Asian markets turned into risk-off. Better than expected Q2 GDP data from China is largely ignored. Instead, Chinese stock lead Asia lower on concern of escalating geopolitical tension in South China Sea. Sterling is so the weakest for today as job data hinted that more people left the job markets. Australian Dollar also receives little support from better than expected job data, which was driven by part-time employment. New Zealand Dollar is also weak as CPI affirms more RBNZ easing ahead. Euro is mixed, awaiting ECB rate decision and press conference.
Technically, we'd believe that if Dollar is to stage a strong rebound, it should happen soon. EUR/USD is close to 1.1496 key medium term resistance. AUD/USD is also pressing 0.7031/7064 key resistance zone too. But the development doesn't favor a comeback of the greenback, with USD/CAD back pressing 1.3490 near term support. Similar, USD/JPY is also pressing 106.63 support level. There is prospect of deeper fall in both USD/CAD and USD/JPY for the near term. In any case, we should find out which way is the way for Dollar soon.
In Asia, Nikkei closed down -0.76%. Hong Kong HSI is down -1.71%. China Shanghai SSE is down -4.50%. Singapore Strait Times is down -0.74%. Japan 10-year JGB yield is down -0.0076 at 0.017. Overnight, DOW rose 0.85%. S&P 500 rose 0.91%. NASDAQ rose 0.59%. 10-year yield rose 0.015 to 0.630.
Nice