Entering US session, Australian Dollar is trading as the weakest one for today as weighed down by a batch of weaker than expected economic data from China. While European equities opened generally higher, it should be noted that Asian indices ended in red, except for Nikkei. Yen follows as the second weakest one, digesting the steep rally since late last week. On the other hand, Canadian Dollar is the strongest one, followed by Swiss Franc and New Zealand Dollar.
A number of important economic data are released during the European session. But they provide little inspirations to the forex markets. UK employment data are mixed. While unemployment dropped to lowest since 1975, the positive effect is offset by slowdown in wage growth. German ZEW economic sentiment beat markets expectations but still point to less favorable environment ahead. Eurozone industrial production. also contracted more than expected. So, Euro and Sterling are only give a very brief and weak lift.
In other markets, Gold hit as low as 1192.40 as medium term down trend resumed. And it’s now consolidation at around 1195. WTI crude oil recovers and is pressing 68 handle. But there is no sign of regaining 70 yet. DAX is trading up 0.16% at the time of writing, CAC up 0.14%, but FTSE is down -0.08%. Earlier in Asia, Hong Kong HSI closed down -0.66%, China Shanghai SSE dropped 0.18%. Singapore Strait Times dropped -0.08%.
However, Nikkei staged a strong and impressive rebound. It closed up 498.65 pts or 2.28%. The development re-affirmed near term bullish outlook and the last week’s selloff just delay an upside breakout. Price actions from 23050.39 should be forming just a consolidation pattern. And rise fro 20347.49 should resume later when such consolidation completes. The index should target a test on 24129.34 high at least.
