The forex markets are staying in consolidative mode this week so far. Aussie is steady in tight range after RBA stood pat as widely expected, even though GDP forecast was upgraded. Dollar is recovering again as the retreat overnight didn’t last long. Canadian Dollar and Yen also trade with a slightly firmer tone. On the other hand, European majors are trading mildly softer.

Technically, consolidative mode will probably continue for a while more. As noted before, while Dollar retreated, there is no clear sign of bullish reversal. Two levels to watch include 0.9180 minor resistance in USD/CHF and 0.7676 minor support in AUD/USD. As long as these levels holds, Dollar’s selloff should resume sooner rather than later. Meanwhile, Gold is pressing 1797.71 near term resistance for now. Break will resume the rise from 1677.69, and would be a sign of Dollar weakness.
In Asia, Hong Kong HSI is up 0.25%. Singapore Strait Times is down -0.18%. Japan and China are still on holiday. Overnight, DOW rose 0.70%. S&P 500 rose 0.27%. NASDAQ dropped -0.48%. 10-year year yield dropped -0.024 to 1.607.

Source: www.actionforex.com