Entering into US Dollar remains the strongest one for today. In particular, there was fresh selling in European majors earlier today that helped lift the greenback. Yen is trading as the second strongest so but that’s only because it’s paring some of this week’s risk appetite triggered losses. As for today, New Zealand Dollar and Sterling are the weakest ones.
For the week, Dollar is staying as the strongest one. Rebound in stocks, in particular in Asia, gave Australian Dollar some solid support. Yen is the weakest one for the week, followed by Swiss Franc and Kiwi.
The rebound in Asian stocks could partly be attributed to China’s softening stance on the issue of trade dispute with the US. So far, the Chinese government just said it will take quantitative and qualitative counter measures against the upcoming USD section 301 tariffs on USD 200B in Chinese goods. However, the lack of detail gives market a feeling that China is backing down from the hard stance. And, instead of pushing going to tit-for-tat tariffs again, it’s trying other ways.
Nikkei’s strong rally on Friday is clearly a sign of relieve. The development now suggests that corrective pull back from 23050.39 has completed with three waves down to 2146.294. Further rise should be seen back to retest 23050.39 resistance next week. Break there will resume whole rebound from 20347.49 to 100% projection of 20347.49 to 23050.39 from 21462.94 at 24165.84, which is close to 24129.34 high.
