Dollar Rising on Risk-off Sentiment and Stronger Yields
| Action Insight Daily Report 10-20-22 |
Dollar Rising on Risk-off Sentiment and Stronger Yields |
Risk-off sentiment and rising treasury yields are giving Dollar some support again. The greenback's strengthen is more apparent against commodity currencies, which is reasonable. European majors are mixed for now, with Euro a touch more resilient. Meanwhile, Yen is indeed trying to recover against everyone but Dollar. There is no clear sign of intervention for now, but as Japan has repeatedly told the markets, there might not be pre-announcement. Technically, Gold is dropping further towards 1614.60 support. Outlook is clearly bearish as it stays well below falling 55 day EMA, bounded inside the medium term falling channel. Firm break of 1614.60 will resume whole decline from 2070.06 to 61.8% projection of 2070.06 to 1680.83 from 1870.66 at 1567.11. The question is, if that happens, whether EUR/USD would also follow and break through 0.9534 low. In Asia, at the time of writing, Nikkei is down -1.25%. Hong Kong HSI is down -2.57%. China Shanghai SSE is down -0.39%. Singapore Strait Times is down -0.07%. Japan 10-year JGB yield is up 0.0070 at 0.261. Overnight, DOW dropped -0.33%. S&P 500 dropped -0.67%. NASDAQ dropped -0.85%. 10-year yield rose 0.129 to 4.127. |
AUD/USD Daily Report Daily Pivots: (S1) 0.6270; (P) 0.6305; (R1) 0.6344; More... AUD/USD dips today but stays inside range of 0.6169/6362 and intraday bias remains neutral. Further decline is expected with 0.6362 support turned resistance intact. Firm break of 100% projection of 0.7660 to 0.6680 from 0.7135 at 0.6155 will target 138.2% projection at 0.5781. Nevertheless, break of 0.6362 will indicate short term bottoming, on bullish convergence condition in 4 hour MACD, and bring stronger rebound back to 0.6539 resistance. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Trade Balance (JPY) Sep | -2.01T | -2.06T | -2.37T | -2.34T | | 00:30 | AUD | NAB Business Confidence Q3 | 9 | 5 | | 00:30 | AUD | Employment Change Sep | 0.9K | 25.0K | 33.5K | 36.3K | | 00:30 | AUD | Unemployment Rate Sep | 3.50% | 3.50% | 3.50% | | 06:00 | CHF | Trade Balance (CHF) Sep | 4.23B | 3.42B | | 06:00 | EUR | Germany PPI M/M Sep | 1.30% | 7.90% | | 06:00 | EUR | Germany PPI Y/Y Sep | 44.00% | 45.80% | | 08:00 | EUR | Eurozone Current Account (EUR) Aug | -20.3B | -19.9B | | 12:30 | USD | Initial Jobless Claims (Oct 14) | 235K | 228K | | 12:30 | USD | Philadelphia Fed Manufacturing Oct | -5 | -9.9 | | 14:00 | USD | Existing Home Sales Sep | 4.69M | 4.80M | | 14:30 | USD | Natural Gas Storage | -173.5B | 125B |
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