Dollar slightly on the backfoot ahead of European trading
Risk tones keep more upbeat but Treasury yields are lower
Equities are keeping the calm to start the new week with US futures looking more upbeat in early trading, with S&P 500 futures and Dow futures both up 0.4% while Nasdaq futures are up 0.3% ahead of European morning trade.
That is helping to nudge commodity currencies a little ahead with USD/CAD down 0.2% to 1.2627 and AUD/USD up 0.3% to 0.7282 currently.
The former is inching towards minor support around the 1.2600 region while the latter is caught in a bit of a tug of war around its key hourly moving averages @ 0.7262-77 (buyers now seizing back some near-term control), with minor resistance seen @ 0.7315.
Elsewhere, the dollar is not much changed as ranges are still relatively narrow though USD/JPY is down slightly to 110.55 as Treasury yields are holding lower.
The technical break higher last week allowed 10-year yields to climb to a high of 1.466% but we are seeing a slight retreat now to 1.445% but a glance at the chart suggests that we could yet see yields extend higher in the sessions to come, so just be wary.
Hence, the light nudge lower in USD/JPY isn’t significant with the focus still leaning more towards testing key daily resistance at the 110.60-80 region.