 Asian stocks, as well as Australian and New Zealand Dollar, are shot up by optimism that US-China trade negotiation is having some nice progress. At the time of writing, Hong Kong HSI is leading the way up with 2.4% gain. China Shanghai SSE is up 1.21%. Nikkei and Singapore Strait Times are also rising 0.81% and 0.73% respectively. Additionally, the Chinese Yuan rebounded after tentatively defending the psychologically important 7.000 handle. Further buying is seen in Aussie and Kiwi as traders are preparing to enter into European session. Sterling pares back some gains today but remains the third strongest on Brexit optimism and hawkish BoE. Additional support is given to the Pound on news of a compromised Irish backstop proposal by the EU. Yen is the weakest on for today, and the week too, on strong risk appetite. Dollar is the second weakest for today as trade war fear recedes. The greenback suffered a roller-coaster ride this week and will need strong job data as savior. Technical, both AUD/USD and NZD/USD dollar show strong signs of medium term trend reversal. It's still a bit far, but AUD/USD will look into 0.7314 key resistance. Similarly, EUR/AUD will look into 1.5601 key support to confirm medium term bearish reversal too. Meanwhile, Dollar's outlook is actually not that bad for now. EUR/USD, while rebounded ahead of 1.1300 key support, is still held by 1.1421 minor resistance. USD/JPY recovered ahead of 112.56 minor support. USD/CHF is also trying to defend 1.0007 minor support. Even USD/CAD is just pressing 1.3068 minor support. There is prospect of a turn around in the greenback. |
