This is in part what is helping to keep the dollar from breaking down further earlier today. The greenback is now trading more mixed but keeping largely steadier against the European currencies. EUR/USD was up to 1.0915 earlier but now down to 1.0870 while USD/CHF is up to 0.8690 after having traded to a low of 0.8650 earlier today.

USD/JPY is still down 0.2% to 147.77 but that owes more to the post-BOJ reaction, after Ueda’s more hawkish tone. Meanwhile, the antipodeans are barely hanging on to its early gains with AUD/USD up 0.2% to 0.6585 but that is down from a high of 0.6612 earlier. The aussie and kiwi were bolstered in Asia trading after China is reportedly planning a ¥1 trillion backstop for the stock market here.

Going back to the bond market, there is still some pushing and pulling going on as seen in the chart above. 10-year yields are bouncing back today after the drop yesterday, after having leaned against its 200-day moving average (blue line) at 4.094%. That remains the key technical level to watch in gauging sentiment for this week.

This article was written by Justin Low at www.forexlive.com.