Asian stocks are broadly lower today, as lead by free fall in Hong Kong stocks. But the development is largely shrugged off by the forex markets. New Zealand dollar rebound strongly after RBNZ surprisingly stands pat today. Swiss Franc and Euro are following as second strongest. On the other hand, Canadian Dollar, US Dollar and Yen are currently the weaker ones. Dollar softened overnight after 10-year yield lost the momentum to 2% handle and closed lower.

Technically, USD/CHF’s break of 0.9911 minor support dampens our original bullish view and suggests that consolidation pattern from 1.0027 is extending with another decline. Yen crosses are staying in consolidations. In particular, price actions of EUR/JPY from 121.46 and of GBP/JPY from 141.50 are clearly corrective. We’d expect a break through respective high soon to resume recent rally.

In Asia, Nikkei dropped -0.85%. Hong Kong HSI is down -2.09%. China Shanghai SSE is down -0.42%. Singapore Strait Times is down -0.72%. Japan 10-year JGB yield is down -0.0162 to -0.052. Overnight, DOW closed flat. S&P 500 rose 0.16%. NASDAQ rose 0.26%. 10-year yield dropped -0.034 to 1.909.