- U.S 10Y yield rose after Chinese officials thought the attractiveness of U.S Treasurers weakened. USD dumped and EURUSD retraced above 1.20 later erased some of the earlier spikes. In the G10 space, NZDUSD elevated much higher above 0.72 rose 0.70%, later retraced slowly to 0.7195. Gold reacted to the North rose 0.70% later erased some of the earlier gains.
- JPY on top again rose between 0.60-2.00%.
- Media reported Canada is increasingly convinced that the Trump administration will soon announce its withdrawal from NAFTA. Yields on Canadian government bonds were lower. CAD down between 0.75%-2.00%.
- We believe Wednesday FX lows are crucial to gauge the near term outlook.
Chart of the day:
NZDUSD: Limited upside available, 0.7240-0.7280 supply zone. 61.8% fib reaction @0.7260.
Trade: Selling between 0.7260-0.7300 sl 0.7345 targets at 0.7120,0.7070 and 0.7000.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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