Huge volatility continues in stock markets as Asian indices dive following the selloff in US overnight. But movements in exchange rates are relatively subdued, and mixed. Swiss Franc, Yen and Euro are currently the weaker ones for the week, followed by Dollar. Australian Dollar is leading other commodity currencies and Sterling as the strongest. However, odds of a come back of risk aversion is building, with NASDAQ near completing and head and shoulder pattern. Fundamentally, we’ll have a speech by Fed Chair Jerome Powell today, and US non-farm payrolls tomorrow, which could trigger more volatility.

Technically, in case of risk off trades, we’ll monitor 106.66 minor support in USD/JPY and 0.9135 minor support in USD/CHF. Break of these levels would indicate that Dollar is over-powered by Yen and Swiss Franc for the near term at least. At the same time, 116.20 support in CHF/JPY will decide which one will decide if Yen could outperform the Swiss Franc.
In Asia, currently, Nikkei is down -2.39%. Hong Kong HSI is down -2.55%. China Shanghai SSE is down -1.58%. Singapore Strait Times is up 0.17%. Japan 10-year JGB yield is up 0.0111 at 0.135. Overnight, DOW dropped -0.39%. S&P 500 dropped -1.31%. NASDAQ dropped -2.70%. 10-year yield rose 0.055 to 1.470.


Source: www.actionforex.com