After declining by 12% Monday, the two major Japanese stock market indices saw rebounds exceeding 11% today.

1. Markets have remained volatile after making massive movements on Monday. The standout was the Japanese stock market, which saw the Nikkei 225 Index increase in value by more than 11% after losing 12% on Monday. The Japanese Yen also sold off following its strong advance. Most other major stock indices globally are advancing, but it is worth noting that the NASDAQ 100 Index has entered correction territory.
2. The Reserve Bank of Australia decided to leave its interest rate on hold at 4.35% at its policy meeting earlier today and had nothing surprising to say about policy. The Australian Dollar hardly reacted.
3. In the Forex market, the Japanese Yen, Euro, and Swiss Franc all made new 8-month highs yesterday against the US Dollar, with the EUR/USD currency pair making another bullish breakout and finally trading above the big round number at $1.1000 before giving up some earlier gains. The EUR/USD will be interesting to trend traders right now on the long side. The US Dollar can be a safe-haven currency but is not truly acting like one because of the Fed’s recent dovish tilt. Since today’s Tokyo open, the Australian Dollar has been the strongest major currency during this session, while the Japanese Yen has been the weakest, putting the AUD/JPY currency cross in focus. Day traders will be interested in trading the high volatility in the Yen. There are Yen crosses that have moved by more than 10% in value in barely more than two weeks, which is extraordinary.
4. Bitcoin has bounced back after briefly trading below $50,000 yesterday following a large drop in value.
5. Yesterday’s release in the USA of ISM Services PMI data came in just a fraction higher than expected.
6. There will be a release later of New Zealand Unemployment Rate data, which is expected to show a strong rise from 4.3% to 4.7%.

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