USD in rebounding move after a roller coaster events happened on the stock market with DJI closing in +565.78 to 24912.53. Which driven more positive risk appetite in Asian session and perceived as the temporarily leading global stock recovery but overall sentiment remains fragile. USDJPY rebounds to 109.54 and selling and buying Nikkei reduces the gains which close only to +35.13 at 21645.37 effect. Some unwinding YEN cross also adds an indirect pressure for USDJPY and short term 110 still a good resistance with downside key pivot at 108.00.
EUR recovery from overnight low of 1.2314 up to 1.2405 but the overall consolidation remains in current mix sentiment as the EUR cross remains supportive on lower side.
GBP recovers up to 1.3993 earlier and follows the coming down of EUR with upcoming Brexit negotiation uncertainty. In ahead of Thursday’s BOE meeting, more position adjustment will be seen but GBP cross weakness will still indirectly adding some pressure for GBP.
AUD lower slightly as broad USD recovers despite of UST yield slightly pulling back to 2.77% (10 years). And the overall RBA disappointment comments will add some short term pressure. The RBNZ meeting, expected unchanged rate at 1.75% and any statement with current NZ FX rate will see some volatility and movement for NZD.
Today US MBA Mortgage Applications, Fed’s William and Evans speech as well as stock/bond market move will dominate the intraday action.