GBP Bounces on CPI, NZD Down after RBNZ

Action Insight Daily Report 5-24-23

GBP Bounces on CPI, NZD Down after RBNZ

New Zealand Dollar falls broadly today as the markets considered the RBNZ rate hike as a dovish one, probably with interest rate already peaked. The development also takes Aussie lower too. Meanwhile, Sterling is attempting a bounce after strong core CPI reading, as well as services prices. But buyers of the Pound appear to be hesitating for now. Euro is also slightly firmer but there is no apparent momentum except versus commodity currencies. Dollar and Yen are mixed, awaiting further guidance from overall risk sentiment.

Technically, one focus for the rest of the day would be on whether Sterling could extend its rebound attempt. EUR/GBP has already breached 0.8660 temporary low too, and it's on track to resume the decline from 0.8977. Levels to watch include 1.2483 minor resistance in GBP/USD, and 172.60 temporary top in GBP/JPY. Break of these levels would mark a stronger come back in the Pound.

In Asia, Nikkei closed down -0.89%. Hong Kong HSI is down -1.17%. China Shanghai SSE is down -0.89%. Singapore Strait Times is down -0.30%. Japan 10-year JGB yield is up 0.0089 at 0.413. Overnight, DOW dropped -0.69%. S&P 500 dropped -1.12%. NASDAQ drooped -1.26%.

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

GBP/USD Daily Outlook

Daily Pivots: (S1) 1.2376; (P) 1.2412; (R1) 1.2450; More...

Intraday bias in GBP/USD is turned neutral with current recovery. Another fall is expected as long as 1.2483 resistance holds. Break of 1.2371, and sustained trading below 55 D EMA (now at 1.2397) will confirm that it's in correction to whole up trend from 1.0351. Deeper fall should then be seen to 1.1801 cluster support (38.2% retracement of 1.0351 to 1.2678 at 1.1789). On the upside, however, break of 1.2483 resistance will bring stronger rebound back to retest 1.2678 high instead.

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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
22:45 NZD Retail Sales Q/Q Q1 -1.40% 0.20% -0.60% -1.00%
22:45 NZD Retail Sales ex Autos Q/Q Q1 -1.10% -1.00% -1.30% -1.60%
00:30 AUD Westpac Leading Index M/M Apr 0.00% 0.00%
02:00 NZD RBNZ Rate Decision 5.50% 5.50% 5.25%
03:00 NZD RBNZ Press Conference
06:00 GBP CPI M/M Apr 1.20% 0.80% 0.80%
06:00 GBP CPI Y/Y Apr 8.70% 8.20% 10.10%
06:00 GBP Core CPI Y/Y Apr 6.80% 6.20% 6.20%
06:00 GBP RPI M/M Apr 1.50% 1.70% 0.70%
06:00 GBP RPI Y/Y Apr 11.40% 11.20% 13.50%
06:00 GBP PPI Input M/M Apr -0.30% -0.50% 0.20%
06:00 GBP PPI Input Y/Y Apr 3.90% 3.80% 7.60% 7.30%
06:00 GBP PPI Output M/M Apr 0.00% -0.10% 0.10% 0.00%
06:00 GBP PPI Output Y/Y Apr 5.40% 7.40% 8.70% 8.50%
06:00 GBP PPI Core Output M/M Apr 0.00% 0.10% 0.30%
06:00 GBP PPI Core Output Y/Y Apr 6.00% 7.30% 8.50% 8.30%
08:00 EUR Germany IFO Business Climate May 93.4 93.6
08:00 EUR Germany IFO Current Assessment May 95.2 95
08:00 EUR Germany IFO Expectations May 91.7 92.2
14:30 USD Crude Oil Inventories 1.5M 5.0M
18:00 USD FOMC Minutes