Aussie Firm after RBA, Euro and Sterling Look Vulnerable
Action Insight Daily Report 3-1-22

Aussie Firm after RBA, Euro and Sterling Look Vulnerable

Overall, the financial markets are steady in Asian session today. Russian invasion of Ukraine continues after the talks between two leaders yielded no breakthrough. Ukraine is holding on defending while isolation of Russia from the West intensified. In the currency markets, commodity currencies are attempting to break out from range. Aussie stays firm after non-eventful RBA while Loonie is awaiting tomorrow's BoC hike. Euro and Sterling remain the weakest ones, and look vulnerable. Dollar turned softer with falling treasury yields. But Yen and Swiss Franc are holding on to gains.

Technically, a focus today is on whether selloff in Euro and Sterling against commodity currencies would pick up momentum. EUR/AUD is going to take on 1.5250/5354 medium term support zone soon and break will resume later down trend. EUR/CAD is also heading back to 1.4098 low. Meanwhile, GBP/CAD and GBP/AUD are both heading back to 1.6964 and 1.8123 supports respectively. Firm break of these levels will solidify near term bearishness.

In Asia, at the time of writing, Nikkei is up 1.48%. Hong Kong HSI is down -0.37%. China Shanghai SSE is up 0.22%. Singapore Strait Times is up 0.88%. Japan 10-year JGB yield is down -0.006 at 0.179. Overnight, DOW dropped -0.49%. S&P 500 dropped -0.24%. NASDAQ rose 0.41%. 10-year yield dropped 0.147 to 1.839.

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Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

EUR/CHF Daily Outlook

Daily Pivots: (S1) 1.0248; (P) 1.0314; (R1) 1.0352; More....

EUR/CHF's breach of 1.0277 suggests resumption of recent decline and intraday bias is back on the downside. Sustained trading below 1.0298 will extend larger down trend and target 61.8% projection of 1.0936 to 1.0298 from 1.0610 at 1.0216. On the upside, above 1.0366 minor resistance will delay the bearish case and turn intraday bias neutral first. But overall outlook will stay bearish as long as 1.0610 resistance holds.

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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
21:30 AUD AiG Performance of Mfg Index Feb 53.2 48.4
00:30 AUD Current Account (AUD) Q4 12.7B 14.3B 23.9B 22.0B
00:30 JPY Manufacturing PMI Feb F 52.7 52.9 52.9
01:00 CNY Manufacturing PMI Feb 50.2 49.9 50.1
01:00 CNY Non-Manufacturing PMI Feb 51.6 50.9 51.1
01:45 CNY Caixin Manufacturing PMI Feb 50.4 49.5 49.1
03:30 AUD RBA Interest Rate Decision 0.10% 0.10% 0.10%
07:00 EUR Germany Retail Sales M/M Jan 1.80% -5.50%
08:30 CHF SVME PMI Feb 64.7 63.8
08:45 EUR Italy Manufacturing PMI Feb 59.2 58.3
08:50 EUR France Manufacturing PMI Feb F 57.6 57.6
08:55 EUR Germany Manufacturing PMI Feb F 58.5 58.5
09:00 EUR Eurozone Manufacturing PMI Feb F 58.4 58.4
09:30 GBP Manufacturing PMI Feb F 57.3 57.3
09:30 GBP Mortgage Approvals Jan 72K 71K
09:30 GBP M4 Money Supply M/M Jan 0.40% 0.10%
13:00 EUR Germany CPI M/M Feb P 0.90% 0.40%
13:00 EUR Germany CPI Y/Y Feb P 5.10% 4.90%
13:30 CAD GDP M/M Dec 0.00% 0.60%
14:30 CAD Manufacturing PMI Feb 56.2
14:45 USD Manufacturing PMI Feb F 57.5 57.5
15:00 USD ISM Manufacturing PMI Feb 57.9 57.6
15:00 USD ISM Manufacturing Prices Paid Feb 77.5 76.1
15:00 USD ISM Manufacturing Employment Index Feb 54.5
15:00 USD Construction Spending M/M Jan -0.50% 0.20%