Action Insight Daily Report 4-20-23

NZ Dollar Weakens on Lower Inflation Data, Dragging Down Aussie

New Zealand Dollar dropped broadly in Asian session today after a lower-than-expected consumer inflation reading increased speculation that the next RBNZ rate hike may be the last in the current cycle. This development also pulled Australian Dollar down, making them the day's worst performers so far. In contrast, Swiss Franc and Euro are trading higher, followed by US Dollar and Japanese Yen, suggesting that the markets are not in a risk-on mood. British Pound and Canadian Dollar are currently mixed.

For the week, the Pound is the strongest currency, bolstered by this week's employment and inflation data, which likely paves the way for another BoE rate hike in May and possibly more afterwards. Dollar is the second strongest, supported by a rebound in treasury yields. Meanwhile, New Zealand Dollar is the weakest, followed by Canadian Dollar and Japanese Yen. Australian Dollar remains resilient, while the Euro's direction is unclear.

Technically, NZD/USD has resumed its decline from 0.6381 following the release of New Zealand's CPI data. Intraday bias is back on the downside, targeting 0.6083 support level and below. However, without strong downward acceleration, significant support could emerge around 50% retracement of 0.5511 to 0.6537 at 0.6024, potentially leading to a rebound and completing the overall corrective pattern from the 0.6537 high.

In Asia, at the time of writing, Nikkei is up 0.28%. Hong Kong HSI is up 0.01%. China Shanghai SSE is down -0.52%. Singapore Strait Times is down -0.49%. Japan 10-year JGB yield is down -0.0060 at 0.472. Overnight, DOW dropped -0.23%. S&P 500 dropped -0.01%. NASDAQ rose 0.03%. 10-year yield rose 0.030 to 3.602.

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

AUD/USD Daily Report

Daily Pivots: (S1) 0.6689; (P) 0.6715; (R1) 0.6740; More...

AUD/USD dips mildly today but stays in range of 0.6619/6804. Intraday bias remains neutral at this point. On the downside, break of 0.6619 will indicate that decline from 0.7156 is resuming through 0.6563 low. Nevertheless, sustained break of 0.6804 will bring stronger rally back to 61.8% retracement of 0.7156 to 0.6563 at 0.6929.

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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