Dollar trades broadly higher in Asian session as the rebound extends. Meanwhile, Australian Dollar is losing some some steam just ahead of RBA rate decision and statement.
Dollar is supported by the rebound in treasury yield. 10 year yield closed higher by 0.042 overnight at 2.937. As noted in our weekly report, TNX should have stabilized after climax decline to 2.759. And the range for consolidation is set between 2.7 and 3.1. Current rebound would likely extend through 3.0 handle. But it may start to feel heavy approaching 3.115 high.
The rebound in TNX lifted USD/JPY with 109.86 minor resistance breached. The development argues that pull back from 111.39 has completed at 108.10 already. And further rise is in favor to retest 111.39. But a break there is unlikely for the moment unless TNX makes a decisive move through 3.115 too.
