Entering into European session, Australian Dollar is the weakest one for today. RBA revealed new economic projections that indicate slow rise in inflation and unemployment rate. Also, it reiterated the stance that the chance for a hike or cut next is evenly balanced. Canadian Dollar is the second weakest as WTI crude oil dips below 52.5. The Loonie will look into job data to be released later today. Sterling’s post BoE rebound lost steam and is now the third weakest.
Yen and Swiss Franc are strong on risk aversion. Investors are apparently troubled by news that Trump is not going to meet Chinese Xi to seal the trade deal this month. New Zealand Dollar is also strong today but it’s just recovering yesterday’s steep post-job data selloff. Dollar is mixed for now.
For the week, Dollar is overwhelmingly the strongest one, trading above prior week’s high against all but Yen. Yen is the second strongest, followed by Swiss Franc. Falling global treasury yields and mild risk aversion are support these two safe-haven currencies. Commodity currencies are weakest, led by Australian Dollar.
In Asia:
- Nikkei closed down -2.01%.
- Hong Kong HSI is back from holiday and is down -0.22%.
- China is still on holiday.
- Singapore Strait Times is down -0.10%.
- Japan 10-year JGB yield is down -0.0227 at -0.031.
Overnight:
- DOW dropped -0.87%.
- S&P 500 dropped -0.94%.
- NASDAQ dropped -1.18%.
- 10-year yield dropped -0.050 to 2.652, back below 2.7% handle.
- 30-year yield dropped -0.045 to 2.993, lost 3.0% handle.
