Risky tones remain more optimistic but the treasury yields are lower
Shares remain calm to start the new week with U.S. futures looking more optimistic in early trading, with S&P 500 futures and Dow futures both up 0.4% while Nasdaq futures up 0.3% ahead of European morning trading.
This helps slightly promote commodity currencies with USD / CAD down 0.2% to 1.2627 and AUD / USD up 0.3% to 0.7282 at present.
The first is targeting tiny support around the 1.2600 region, while the second is catching a bit of a pullback around its key hourly moving averages @ 0.7262-77 (buyers are now grabbing some near-term control), with a small resistance seen @ 0.7315.
Elsewhere, the dollar hasn’t changed much, as ranges are still relatively narrow although USD / JPY is falling slightly to 110.55 as treasury yields hold lower.
The technical break higher last week allowed 10-year yields to climb to a high of 1.466% but we see a slight pullback now to 1.445% but a look at the chart suggests we could still see yields extend higher in the coming sessions. , so just be careful.
Therefore, the light push lower in USD / JPY does not matter with the focus even more on trying to test key daily resistance at the 110.60-80 region.
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