- The USD/JPY currency pair advanced again during the Tokyo session to print a new 9-month high above the resistant round number of ¥145 before falling back a bit to trade below ¥145 again. Trend traders and yield traders will be interested in being long of this currency pair. The Dollar is bullish with rising short-term yields while the Japanese Yen remains one of the weakest major currencies on the Bank of Japan’s ultra-loose monetary policy. However, bulls will be wary that the Bank of Japan may intervene again as it did the last time the price reached this area.
- The NZD/USD currency pair has traded lower again today to make a new 9-month low price well below the big round number at $0.6000.
- Global stock markets are mostly lower, led down by Asia which in turn has been led lower by the strong selloff in Chinese stock markets. The HSI is down today by more than 2% while the Nikkei 225 Index is down by more than 1%.
- WTI Crude Oil is making a bearish retracement after strongly breaking to new 8-month high prices last week. Trend traders might find it interesting to seek to get involved here on the long side.
- The US Dollar is weakly bullish as it tried to break out of a bearish wedge pattern.
- In the Forex market, the Japanese Yen has been the strongest major currency since the Tokyo open, with the New Zealand Dollar again the weakest, putting the NZD/JPY currency cross into focus.
- There will be releases tomorrow of Chinese industrial production data and the Reserve Bank of Australia’s most recent monetary policy meeting minutes and Australian wage price index data.