Dollar Selloff Continues as China Eases Restrictions, RBA and BoC To Hike This Week
| Action Insight Daily Report 12-5-22 |
Dollar Selloff Continues as China Eases Restrictions, RBA and BoC To Hike This Week |
Dollar's selloff continues in Asian session today as overall market sentiment is supported by further restriction easing in China. The improvement in sentiment is also reflected in some weakness in Yen and Swiss Franc. Australian Dollar and Canadian Dollar are trading generally higher, awaiting rate hike by RBA and BoC later in the week. Euro and Sterling are mixed for now. Technically, Gold is also extending the rise from 161.51. Next target is 61.8% projection of 1616.51 to 1786.83 from 1728.48 at 1833.73. Sustained break there could prompt acceleration to 100% projection at 1898.80, which is close to 1900 handle. If happens, that could be a confirming signal of Dollar's selloff, which might be accompanied by EUR/USD's firm break of 1.0609 fibonacci level. In Asia, at the time of writing, Nikkei is down -0.03%. Hong Kong HSI is up 3.46%. China Shanghai SSE is up 1.56%. Singapore Strait Times is up 0.49%. Japan 10-year JBG yield is up 0.0026 at 0.254. |
AUD/USD Daily Report Daily Pivots: (S1) 0.6747; (P) 0.6791; (R1) 0.6840; More... AUD/USD's rally is resuming and intraday bias is back on the upside for 0.6871 fibonacci level. For now, outlook will remain bullish as long as 0.6641 support holds, in case of retreat. However, break of 0.6641 will indicate rejection by 0.6871 and turn bias back to the downside instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:30 | AUD | AiG Performance of Construction Index Nov | 48.2 | 43.3 | | 00:00 | AUD | TD Securities Inflation M/M Nov | 1.00% | 0.40% | | 00:30 | AUD | Company Gross Operating Profits Q/Q Q3 | -12.40% | -1.50% | 7.60% | 7.80% | | 01:45 | CNY | Caixin Services PMI Nov | 46.7 | 48.8 | 48.4 | | 08:45 | EUR | Italy Services PMI Nov | 47.6 | 46.4 | | 08:50 | EUR | France Services PMI Nov F | 49.4 | 49.4 | | 08:55 | EUR | Germany Services PMI Nov F | 46.4 | 46.4 | | 09:00 | EUR | Eurozone Services PMI Nov F | 48.6 | 48.6 | | 09:30 | EUR | Eurozone Sentix Investor Confidence Dec | -27.1 | -30.9 | | 09:30 | GBP | Services PMI Nov F | 48.8 | 48.8 | | 10:00 | EUR | Eurozone Retail Sales M/M Oct | -1.60% | 0.40% | | 13:30 | CAD | Building Permits M/M Oct | -2.00% | -17.50% | | 14:45 | USD | Services PMI Nov F | 46.1 | 46.1 | | 15:00 | USD | ISM Services PMI Nov | 53.5 | 54.4 | | 15:00 | USD | Factory Orders M/M Oct | 0.00% | 0.30% |
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