Dollar surges overnight after much hawkish than expected Fed interest rate projections. The case of near term bullish reversal continues to build up and there is prospect of further rally before weekend. Markets are relatively mixed elsewhere though. Australian Dollar is lifted by strong job data while New Zealand Dollar is supported by strong GDP. Yet, there is no follow through buying. Euro turned weaker but still, the selloff is not disastrous in crosses.

Technically, Dollar’s rally gather momentum with break of 1.4033 support in GBP/USD, 0.7644 support in AUD/USD, 0.9052 resistance in USD/CHF, 110.32 resistance in USD/JPY and 1.2201 resistance in USD/CAD. With 1.2 handle taken out, a major focus now is on 1.1985 support in EUR/USD. Sustained break of this level would likely drag EUR/USD towards 1.1703 medium term trend defining support.

In Asia, at the time of writing, Nikkei is down -1.15%. Hong Kong HSI is up 0.31%. China Shanghai SSE is up 0.17%. Singapore Strait Times is up 0.21%. Japan 10-year JGB yield is up 0.0156 at 0.065. Overnight, DOW dropped -0.77%. S&P 500 dropped -0.54%. NASDAQ dropped -0.24%. 10-year yield rose 0.070 to 1.569.