The Dollar remains resilient as a further push higher in USD/JPY triggers flows into the currency today. The pair looks set to march towards 135.00 and is up almost 120 pips today at 113.75 at the moment. The mood is helped by a rise in bond yields, with the 10-year Treasury yield rising 4 basis points to 3.01%.
Elsewhere, the greenback is also posting modest gains with the gloomy risk mood seeing the Aussie and Kiwi the most punished.
EUR/USD is down 0.2% at 1.0675 as the push and pull continues ahead of the ECB. Meanwhile, the GBP/USD has retreated from the highs near 1.2600 to drop towards the 1.2520 levels at this time. The daily support levels below will be worth watching:
That being the 38.2 Fib retracement level at 1.2471 and the June 1 low at 1.2458. These are key levels to watch on the daily close to see if the sellers fancy going for the next leg lower.
On top of that, AUD/USD fell another 0.6% to 0.7180 following the rejection of its 100-day moving average:
Sellers are struggling for near-term control below the 200 hourly moving average at 0.7194, but the minor support region around 0.7145-60 will be one to watch to see if the bearish momentum extends further.
The Aussie and Kiwi’s slower tones are not helped by the softer risk mood with European indices posting slight losses now with US futures still trending lower. S&P 500 futures are still down 0.3% at the moment.