Aussie Rises Further as Risk-On Sentiment Continues
Action Insight Daily Report 12-9-21

Aussie Rises Further as Risk-On Sentiment Continues

Market sentiment is generally positive in Asian session today. Australian and New Zealand Dollar are extending near term rebound. Other currencies are mixed, though. Canadian Dollar is paring some gains, after the non-eventful BoC rate decision. Sterling is trying to recover from yesterday's selloff. Dollar and Yen are mixed.

Technically, we'll pay attention to both AUD/USD and USD/CAD today. AUD/USD is now trying to break through 0.7272 minor resistance. Sustained trading above there should confirm short term bottoming at 0.6992, just after drawing support from 0.6991 medium term support level. Stronger rise should at least be seen back to 55 day EMA (now at 0.7278, with prospect of bullish reversal.

Meanwhile, sustained break of 1.2639 support in USD/CAD would argue that rebound from 1.2286 is completed at 1.2852, and deeper fall would be seen back to 1.2286 support. Both developments, if happen, could affirm that risk-on sentiment is fully back in the markets.

In Asia, Nikkei closed down -0.47%. Hong Kong HSI is up 0.97%. China Shanghai SSE is up 1.24%. Singapore Strait Times is up 0.29%. Japan 10-year JGB yield is up 0.0034 at 0.053. Overnight, DOW rose 0.10%. S&P 500 rose 0.31%. NASDAQ rose 0.64%. 10-year yield rose 0.029 to 1.509.

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AUD/USD Daily Report

Daily Pivots: (S1) 0.7129; (P) 0.7157; (R1) 0.7198; More...

Immediate focus is now on 0.7172 resistance in AUD/USD. Sustained break there should confirm short term bottoming at 0.6992. More importantly, whole corrective fall from 0.8006 might be finished too after defending 0.6991 key structural support. Stronger rise should then be seen to 55 day EMA (now at 0.7275). Firm break there will target 0.7555 resistance to confirm this bullish case. On the downside, however, firm break of 0.6991 will carry larger bearish implication and extend the down trend from 0.8006.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
21:45 NZD Manufacturing Sales Q3 -2.20% 4.20% 3.90% 3.70%
23:50 JPY BSI Large Manufacturing Q3 7.9 5.3 7
23:50 JPY Money Supply M2+CD Y/Y Nov 4.00% 4.40% 4.20%
0:01 GBP RICS Housing Price Balance Nov 71% 72% 70% 71%
0:30 AUD RBA Bulletin Q3
1:30 CNY CPI Y/Y Nov 2.30% 2.50% 1.50%
1:30 CNY PPI Y/Y Nov 12.90% 12.60% 13.50%
6:00 JPY Machine Tool Orders Y/Y Nov 64.0% 81.50%
7:00 EUR Germany Trade Balance (EUR)Oct 12.9B 13.2B
8:00 CHF SECO Economic Forecasts
13:30 USD Initial Jobless Claims (Dec 3) 225K 222K
15:00 USD Wholesale Inventories Oct F 2.20% 2.20%
15:30 USD Natural Gas Storage -59B