Consolidative Trading Continues as Dollar Awaits NFP Guidance
| Action Insight Daily Report 10-6-22 |
Consolidative Trading Continues as Dollar Awaits NFP Guidance |
The forex markets are still staying in consolidative mode for now, awaiting guidance from US non-farm payrolls. For now, some Fed hawks are rather clear that there's seeing no case for slowing down tightening yet. Fed fund futures are pricing in over 70% chance of another 75bps hike in November. But such expectations could be changed by today's job report, as well as next week's CPI data. Technically, Yen would be an interesting one to watch today. Strong job data, including wage growth, could prompt US treasury yields higher, which might take USD/JPY through 145.89. Yet, firstly, risk-off sentiment in that case (good news is bad news for stock) could give Yen a floor. Secondly, and more importantly, Japan might intervene again to cushion Yen's decline. The net result could mean deeper selloff in other Yen crosses. Let's see. In Asia, at the time of writing, Nikkei is down -0.74%. Hong Kong HSI is down -1.32%. Singapore Strait Times is down -0.14%. Japan 10-year JGB yield is up 0.003 at 0.247. Overnight, DOW dropped -1.15%. S&P 500 dropped -1.02%. NASDAQ dropped -0.68%. 10-year yield rose 0.0067 to 3.826. |
AUD/USD Daily Report Daily Pivots: (S1) 0.6352; (P) 0.6447; (R1) 0.6503; More... Intraday bias in AUD/USD remains neutral as consolidation from 0.6362 could extend. Another recovery cannot be ruled out, but upside should be limited well below 0.6698 support turned resistance. Break of 0.6362 will resume larger down trend to 100% projection of 0.7660 to 0.6680 from 0.7135 at 0.6155. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | Labor Cash Earnings Y/Y Aug | 1.70% | 1.40% | 1.80% | | 23:30 | JPY | Overall Household Spending Y/Y Aug | 5.10% | 6.80% | 3.40% | | 05:00 | JPY | Leading Economic Index Aug P | 100.9% | 99.20% | 98.90% | | 05:45 | CHF | Unemployment Rate Sep | 2.10% | 2.10% | | 06:00 | EUR | Germany Import Price Index M/M Aug | 2.20% | 1.40% | | 06:00 | EUR | Germany Retail Sales M/M Aug | -1.00% | 1.90% | | 06:45 | EUR | France Trade Balance (EUR) Aug | -13.2B | -14.5B | | 07:00 | CHF | Foreign Currency Reserves (CHF) Sep | 860B | | 08:00 | EUR | Italy Retail Sales M/M Aug | 1.00% | 1.30% | | 12:30 | USD | Nonfarm Payrolls Sep | 265K | 315K | | 12:30 | USD | Unemployment Rate Sep | 3.70% | 3.70% | | 12:30 | USD | Average Hourly Earnings M/M Sep | 0.30% | 0.30% | | 12:30 | CAD | Net Change in Employment Sep | 22.5K | -39.7K | | 12:30 | CAD | Unemployment Rate Sep | 5.40% | 5.40% | | 14:00 | USD | Wholesale Inventories Aug F | 1.30% | 1.30% |
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