USD index continues to grid higher lead by weaker GBP and lower USDJPY. The UST yield consolidation in around 2.9% (10 years) and lower US stock (DJI -1.5% S&P 500 -1.11% Nasdaq -0.78%) still driven some mixture for the broad USD move. Market remains to digest hawkish Powell with risk for a 4 hikes in the year and US data around expectation with little implication so far in short term market.
AUD down to a 2 months low of 0.7716 earlier after weak capital investment data as well as in reflection of broad USD strength.
GBP lowers down after Theresa May rejects EU exit bill draft and initial negotiation still stuff and lack of progress. That driven the GBP and GBP cross to go low in despite of the short term technical oversold. USDJPY goes lower after yesterday when BOJ reduces the bond buying. And fragile risk sentiment with lower US and Japan stock driven more YEN cross selling effect. Short term support at 106.50 and break open the door for retest 105.50-55 key pivot level with topside sellers above 107.10-20 for intraday.
EUR remains in defensive move with the recovery of broad USD. Some are cautious ahead of Sunday’s Italian election and German SPD vote. Overall the economy and the shift of ECB policy stance in near term will driven more demand for the Eurozone asset and helping the rebound of EUR.
Today Eurozone, Germany, UK and US Manufacturing PMI data, US Personal Income/Spending, Personal Consumption Expenditure, Powell Speech and stock/bond market move will direct the intraday action.