OIL PRODUCTS: Formosa Petrochem Becomes Top Russian Naphtha Buyer: Platts

• RES 4: 114-10   High Apr 7 (cont.)
• RES 3: 114-00   Round number resistance 
• RES 2: 113-26+ 2.764 proj of the Jul 15 - 22 - 28 price swing 
• RES 1: 113-21+ High Sep 5
• PRICE:‌‌ 113-08 @ 17:44 BST Sep 9
• SUP 1: 112-28+/112-11+ Low Sep 5 /  20-day EMA
• SUP 2: 111-26+ 50-day EMA
• SUP 3: 111-13+ Low Aug 18 and a key support  
• SUP 4: 110-25   Low Aug 1 

Treasury futures rallied sharply higher last Friday and the contract remains closer to its recent highs The move higher highlights an acceleration of the uptrend. Note too that moving average studies are in a bull-mode position, highlighting a dominant uptrend. This paves the way for an extension through 113-21 next (pierced), the 2.618 projection of the Jul 15 - 22 - 28 price swing. Initial firm support to watch is 112-11+, the 20-day EMA.

• US TSY 3Y AUCTION: NON-COMP BIDS $213 MLN FROM $58.000 BLN TOTAL

• USDJPY volatility led a whippy session in global currency markets, as market participants digested a deeply negative NFP annual revision but also await significant PPI and CPI releases, due later in the week.
• Initial USDJPY downside momentum was prompted by a set of hawkish comments from the BOJ, indicating there is a "chance of" a hike this year despite the political turmoil following PM Ishiba's resignation Sunday. "Some officials are even of the view that a hike might be appropriate as early as October", the Bloomberg article added. USDJPY reached as low as 146.31, trading within 10 pips of key short-term support.
• Intra-day positioning dynamics may have then fostered a bounce as the market awaited the BLS payrolls revision, with USDJPY trading closer to 147 ahead of the release. Despite a quick dip back down to 146.53, spot has subsequently been grinding higher and currently stands around 147.25 ahead of the APAC crossover.
• Dollar strength has been most notable against the Euro, with EURUSD slipping 0.35% to 1.1720. Lingering French political risks will likely be dampening topside momentum for the single currency. Short-term parameters for EURUSD appear well defined at 1.1829 (Jul 01 high and bull trigger) and 1.1625 (50-day EMA support).
• Price action for the likes of AUD and NZD has been much more contained, particularly allowing AUDUSD to consolidate close to the highest levels of the year, located at 0.6625. In similar vein, GBPUSD sits just 0.09% lower on the day as the pair’s strong technical recovery consolidates. Early strength saw GBPUSD trade within 5 pips of resistance at 1.3595, the Aug 14 high and a bull trigger. This remains the key short-term hurdle for a stronger bounce.
• Focus turns to US price data, as PPI and CPI releases are expected across Wednesday and Thursday respectively. China CPI and PPI figures will be released during APAC hours tomorrow.