Dollar Fell as Sentiment Reversed, Yen Staying Weakest Despite Unconfirmed Sign of Intervention
| Action Insight Daily Report 10-14-22 |
Dollar Fell as Sentiment Reversed, Yen Staying Weakest Despite Unconfirmed Sign of Intervention |
Dollar's post-CPI rally faltered quickly, as risk sentiment staged a historic U-turn. For now, Sterling is the strongest one for the week on rumors that UK Prime Minister Liz Truss is going to reverse the mini-budget. New Zealand Dollar is the second strongest, followed by Euro. Yen remains the worst performer despite sign of intervention. Australian Dollar is the next worst, followed by Swiss Franc. The greenback is mixed for now, awaiting retail sales data from the US. Technically, both EUR/JPY and GBP/JPY has resumed their near term rebounds from 137.32 and 148.93 respectively. Further rally would be seen towards 145.62 and 169.10 highs. But the question remains on what Japan would do with USD/JPY close to 1998 high, and the impact on other pairs. That is, if USD/JPY is knocked down again, would other Yen crosses follow, or Dollar is sold off instead? In Asia, Nikkei closed up 3.25%. Hong Kong HSI is up 2.59%. China Shanghai SSE is up 1.93%. Singapore Strait Times is up 0.68%. Japan 10-year JGB yield is down -0.0018 at 0.249. Overnight, DOW rose 2.83%. S&P 500 rose 2.60%. NASDAQ rose 2.23%. 10-year yield rose 0.0050 to 3.952, after hitting as high as 4.080. |
AUD/USD Daily Report Daily Pivots: (S1) 0.6206; (P) 0.6261; (R1) 0.6352; More... In temporary low is formed at 0.6169 in AUD/USD, just ahead of 100% projection of 0.7660 to 0.6680 from 0.7135 at 0.6155. Intraday bias is turned neutral first but outlook will stay bearish as long as 0.6539 resistance holds. Firm break of 0.6155 will target 138.2% projection at 0.5781. Nevertheless, firm break of 0.6539 will confirm short term bottoming and bring stronger rebound. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:30 | NZD | Business NZ PMI Sep | 52 | 54.9 | 54.8 | | 23:50 | JPY | Money Supply M2+CD Y/Y Sep | 3.30% | 3.40% | 3.40% | | 01:30 | CNY | CPI Y/Y Sep | 2.80% | 2.80% | 2.50% | | 01:30 | CNY | PPI Y/Y Sep | 0.90% | 1.10% | 2.30% | | 09:00 | EUR | Eurozone Trade Balance (EUR) Aug | -40.0B | -40.3B | | 12:30 | CAD | Manufacturing Sales M/M Aug | -1.10% | -0.90% | | 12:30 | CAD | Wholesale Sales M/M Aug | 0.10% | -0.60% | | 12:30 | USD | Retail Sales M/M Sep | 0.20% | 0.30% | | 12:30 | USD | Retail Sales ex Autos M/M Sep | -0.10% | -0.30% | | 12:30 | USD | Import Price Index M/M Sep | -1.10% | -1.00% | | 14:00 | USD | Michigan Consumer Sentiment Index Oct P | 58.8 | 58.6 | | 14:00 | USD | Business Inventories Aug | 0.90% | 0.60% |
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