Dollar trades mildly higher in early US session, lifted by stronger than expected durable goods orders data. But it’s being overwhelmed by both Sterling and Aussie. Commodity currencies are firmer on “stable” market sentiment, but there is no follow through buy yet, including Canadian Dollar. On the other hand, Euro and Swiss Franc are the weaker ones so far, together with Yen. Euro is having little reaction to news that German Social Democrat came in first in Sunday’s election, and is preparing a three-way coalition government with Greens and the liberal Free Democrats, without Angela Merkel’s CDU/CSU conservative bloc.

Technically, USD/JPY’s break of 110.79 resistance affirms the near term bullish view that consolidation from 111.65 has completed. Stronger rise should be seen next to retest this 111.65 high. We’d also keep an eye on whether EUR/USD would fall through 1.1682 temporary low, as well as 1.1663 support to signal general underlying buying in Dollar.

In Europe, at the time of writing, FTSE is up 0.01%. DAX is up 0.27%. CAC is up 0.23%. Germany 10-year yield is up 0.0197 at -0.205. Earlier in Asia, Nikkei dropped -0.02%. Hong Kong HSI rose 0.07%. China Shanghai SSE dropped -0.84%. Singapore Strait Times rose 1.27%. Japan 10-year JGB yield rose 0.0010 to 0.056.

Source: www.actionforex.com