Entering into US session, Australian Dollar remains the strongest one for today, followed by New Zealand Dollar. The Aussie was boosted by RBA statement earlier today. In short, while RBA downgraded growth and inflation forecast for 2019, it remained confident that inflation will gradually return to target. This is consistent with the rhetoric that next move is a hike rather than a cut. Dollar is the third strongest one as it’s trying to rebound again.
On the other hand, Swiss Franc is the weakest one for today as European stocks rise. . In particular, USD/CHF has taken out 0.9994 resistance to resume rise from 0.9716 already. EUR/CHF also broke 1.1429 to resume rise from 1.1181. Sterling is the weakest one for today so far. Markets shrug off UK PM May’s plan to visit EU Juncker on Thursday. Euro follows as the third weakest. Both Euro and Sterling are also weighed down by weak PMI data.
In Europe:
- FTSE is up 1.23%.
- DAX is up 1.05%.
- CAC is up 1.00%.
- German 10-year yield is up 0.0101 at 0.189, but stays below 0.2 handle.
Earlier in Asia:
- Nikkei closed down -0.19%.
- Japan 10-year JGB yield rose 0.0036 to -0.008, staying negative.
- China, Hong Kong and Singapore are on lunar new year holiday.
