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.
