 Mild risk aversion is the main theme in the financial markets today. Selloff started in Asia, in particular in China, and spread to European session. Japan 10-year JGB yield also turned negative again. In the currency markets, Australian Dollar leads other commodity currencies lower in a typical day of risk aversion. Yen is the strongest one as usual. Sterling is boosted by solid job data, but gain is limited as Brexit stalemate continues. Dollar is the third strongest so far. Technically, USD/CAD's earlier break of 1.3323 resistance suggests short term bottoming at 1.3180. Stronger rebound could be seen back to 1.3664 resistance. AUD/USD is pressing 0.7116 minor support now. Break will indicate completion of rebound from 0.6722 low and bring deeper fall back to this level. EUR/USD is also extending fall from 1.1569 towards 1.1307 support. One thing to note is that while Yen is strong, USD/JPY, EUR/JPY and GBP/JPY are all held well above near term support level. Thus, there is no confirmation of completion of recent rebound in yen crosses yet. In other markets, at the time of writing, FTSE is down -0.58%, DAX is down -0.46%, CAC is down 0.45%. German 10-year yield is down -0.015 at 0.241. Earlier in Asia, Nikkei dropped -0.47%, Hong Kong HSI dropped -0.70%, China Shanghai SSE dropped -1.18%, Singapore Strait Times dropped -0.86%. Japan 10-year JGB yield dropped -0.006 to -0.001, turned negative. Released from Canada, wholesale sales dropped -1.0% mom in November, manufacturing sales dropped -1.4% mom. US government shutdown is extending its record one. |
