Two currencies at opposite ends of the table today
While the JPY leads the way among the major bloc, the NZD is the laggard as the market so far keeps its focus on Bitcoin and a slight slump in the equities front.
NZD/JPY tested the April and May lows last week, but has held on so far. As European and US traders start coming into the fray this week, we'll have to see if the current sentiment here in Asia carries on to the other parts of the world as well.
While the pair may look towards breaking the support levels mentioned, there is comfort for the bulls that the lowest point for the year so far is lurking nearby at 75.68. Though if you look at it the other way around, if we are heading towards that level, do you really want to catch a falling knife?
Another currency on the ropes is the AUD. It's the second worst-performing major currency today, and AUD/JPY is trying to stay above the key 84.50 level - though it is managing to do so.
But the RBA is only expected to bring rate hike talks to the table in late 2018 and its status as a premium yielding currency is now under threat - Aussie 2-year government bond yields are at 1.76% while US 2-year government bond yields are at 1.75% - as yield spreads narrow.
That will be one to watch out for in the near-term.
