The major Asian equity markets all fell overnight, led by losses in Chinese markets. In FX, the Aussie Dollar rose slightly, while all other major currencies declined against the US Dollar. EUR/USD started the new trading day around 1.0915 and rose to a high of 1.0969 in the early session. However, it was unable to sustain momentum and fell back to 1.0930 as Hong Kong opened. Eventually, it declined to a low of 1.0908.
Despite Japanese markets being closed, there was no lack of volatility in USD/JPY. The pair opened around 116.75 in Sydney and eventually climbed back to 117.45 after the Hong Kong open. Decent resistance can be expected in the 117.80/118.00 area, while support is seen at 116.70 and 116.20.
AUD/USD bounced off the 0.6925 level and made it to 0.6980 overnight. Minor resistance can be expected at 0.70, but the main level to watch is now 0.7075.
Looking ahead, there are no relevant data releases scheduled for today, so FX traders may look again at the volatile equity markets for guidance.
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