Yen and Dollar trade broadly lower today while markets are having different reactions to US-China trade deal phase one, which was signed finally yesterday. Asian stocks were mixed while European stocks are soft. But US futures point to higher open, probably extending recent record runs, while 10-year yield is back above 1.8 handle. Australian and New Zealand Dollar are the strongest today. Swiss Franc is also firm as safe haven flows on Russia uncertainty continue.

Technically, AUD/USD breaches 0.6930 but cannot sustain above this minor resistance yet. As long as 0.6930 holds, we’d still expect another decline through 0.6849 to extend the fall from 0.7031. However, firm break of 0.6930 will revive near term bullishness for 0.7031 and above. This will be a focus in European session. EUR/JPY breaches 122.76 temporary top and should be trying to extend recent rise form 115.86. Yet, upside momentum is not too convincing for now.

In Europe, currently, FTSE is down -0.29%. DAX is down -0.02%. CAC is up 0.06%. German 10-year yield is down -0.012 at -0.209, back below -0.2 handle. Earlier in Asia, Nikkei rose 0.07%. Hong Kong HSI rose 0.38%. China Shanghai SSE dropped -0.52%. Singapore Strait Times rose 0.65%. Japan 10-year JGB yield rose 0.0019 to 0.009.