Asia Stocks Slide After Brief Show of Resistance – BBG
Japan 10-Year Yield Drops to Zero for First Time in Five Months – RTRS
Asian stock markets came under pressure again, with most major indices down on the day. The Shanghai Composite lost more than 1 %. Meanwhile, Gold remained steady around $1290. The metal regained some strength after the Dollar weakened broadly yesterday.
After heavy losses yesterday, the Dollar managed to recover slightly in Asia. The British Pound remained bid nevertheless. The market was caught by surprise after UK PM May announced an election in June. GBP/USD jumped from 1.25 to 1.27, and later extended gains above 1.29. Short positioning has been at a record high last week according to the CFTC, so it is clearly a short squeeze.
Despite the Dollar weakness, the commodity currencies failed to benefit from it. The Australian Dollar consolidated around 0.7550 and overnight it fell back towards 0.7525 support. Given the low risk appetite, the outlook for the AUD remains negative.