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The kiwi and pound are leading gains with the former bouncing back after the RBNZ policy statement, with AUD/NZD slumping after meeting resistance closer to 1.0800.

WCRS 24-02

Meanwhile, the latter continues to be buoyed by the solid technical picture with EUR/GBP falling below 0.8600 for the first time since February last year.

Elsewhere, the dollar is keeping more mixed and tepid with the yen and franc slumping after yesterday's rebound in Wall Street. The latter also continues to come under pressure as EUR/CHF breaks above 1.1000 for the first time since December 2019.

Despite yesterday's comeback in US trading, risk sentiment remains fragile still and that is evident by the drop in US futures as we approach European morning trade.

S&P 500 futures are down 0.5% while Nasdaq futures are down 1.0% at the moment.


The bond selloff is meeting a bit of a pause with Fed chair Powell stepping in yesterday, with real yields also slipping back a little to -0.84% from -0.78% earlier in the week.

It is all about risk sentiment ahead of the month-end now and today will be another test of dip buyers' resolve to see if we will get a repeat of yesterday's action.

Otherwise, the correction may still run deeper towards key technical support before finding more conviction to run back higher moving forward.

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