Kiwi Rises after RBNZ Hike, Dollar Stay as Worst Performer
| Action Insight Daily Report 10-5-22 |
Kiwi Rises after RBNZ Hike, Dollar Stays as Worst Performer |
New Zealand Dollar rises broadly in quiet markets today, after RBNZ delivered the 50bps rate hike as widely expected, clearing the doubt that it will follow RBA and opt for a smaller hike. Dollar remains the worst performer of the week, following strong risk rebound in stock markets, while yields weakened. Yen is the second weakest, only slightly better than Dollar. Sterling is so far the winner, continuing to reverse prior deep losses while Euro and Swiss France are also firm. Technically, a focus for now is whether Euro and Sterling could maintain upside momentum to solidify it as a trend. 4 hour RSI in EUR/JPY is dipping back from overbought region, suggesting that there may loss of upside momentum. Break of 140.35 minor support will suggest rejection by 145.62 high, to start the third leg of the consolidation pattern from there. In Asia, at the time of writing, Nikkei is up 0.36%. Hong Kong HSI is up 5.47%. Singapore Strait Times is up 0.35%. Japan 10-year JGB yield is up 0.0312 at 0.263. Overnight, DOW rose 2.80%. S&P 500 rose 3.06%. NASDAQ rose 3.34%. 10-year yield dropped -0.034 to 3.617. |
EUR/USD Daily Outlook Daily Pivots: (S1) 0.9862; (P) 0.9930; (R1) 1.0055; More... EUR/USD's rebound from 0.9534 is still in progress and intraday bias stays on the upside. Considering bullish convergence condition in daily MACD, sustained break of 55 day EMA (now at 1.0022) will raise the chance of medium term bottoming at 0.9534. Further rally should then be seen to 38.2% retracement of 1.1494 to 0.9534 at 1.0283. On the downside, though, break of 0.9734 minor support will bring retest of 0.9534 low instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 01:00 | NZD | RBNZ Interest Rate Decision | 3.50% | 3.50% | 3.00% | | 06:00 | EUR | Germany Trade Balance (EUR) Aug | 4.0B | 5.4B | | 06:45 | EUR | France Industrial Output M/M Aug | -0.30% | -1.60% | | 07:45 | Italy | Italy Services PMI Sep | 49.2 | 50.5 | | 07:50 | EUR | France Services PMI Sep F | 53 | 53 | | 07:55 | EUR | Germany Services PMI Sep F | 45.4 | 45.4 | | 08:00 | EUR | Eurozone Services PMI Sep F | 50.2 | 48.9 | | 08:30 | GBP | Services PMI Sep F | 49.2 | 49.2 | | 12:15 | USD | ADP Employment Change Sep | 200K | 132K | | 12:30 | USD | Trade Balance (USD) Aug | -67.8B | -70.6B | | 12:30 | CAD | Building Permits M/M Aug | -0.80% | -6.60% | | 12:30 | CAD | International Merchandise Trade (CAD) Aug | 3.5B | 4.1B | | 13:45 | USD | Services PMI Sep F | 49.2 | 49.2 | | 14:00 | USD | ISM Services PMI Sep | 56 | 56.9 | | 14:30 | USD | Crude Oil Inventories | -0.2M |
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