Dollar attempted for a rally overnight after hawkish comments from Fed Chair Jerome Powell, but momentum quickly faded. Instead, the greenback was dragged down by extended weakness in benchmark treasury yields. Overall market sentiment is stable in Asian session, helping commodity currencies rebound. Aussie is additionally lifted by better than expected GDP data. But then, any news regarding Omicron could trigger volatility again.

Technically, it looks like Aussie has at least found a temporary bottom, with AUD/USD’s break of 0.7158 minor resistance. we’d keep an eye on AUD/JPY today. Break of 81.39 will bring bring stronger recovery back to 4 hour 55 EMA (now at 82.02), and possibly further to 38.2% retracement of 86.24 to 80.09 at 82.43. We’ll see if overall risk sentiment could give Aussie a hand.
In Asia, at the time of writing, Nikkei is up 0.84%. Hong Kong HSI is up 1.40%. China Shanghai SSE is up 0.11%. Singapore Strait Times is up 1.29%. Japan 10-year JGB yield is up 0.0087 at 0.067. Overnight, DOW dropped -1.86%. S&P 500 dropped -1.90%. NASDAQ dropped -1.55%. 10-year yield dropped -0.087 to 1.443.

Source: www.actionforex.com