Dollar Mixed Ahead of ADP and ISM, Euro Eyes CPI

Action Insight Daily Report 5-31-23

Dollar Mixed Ahead of ADP and ISM, Euro Eyes CPI

Dollar turned mixed in Asian session as traders are awaiting fresh inspirations from economic data and comments from Fed officials. The FOMC is clearly split in way with some policymakers advocating a "hold" in June. Nevertheless, they're unified in another way that even a "hold" doesn't necessarily means a "pause", not to mention a "peak". The greenback, in any case, will look into today's ADP employment and ISM manufacturing, as well as tomorrow's non-farm payroll data for more guidance.

Australian Dollar is recovering mildly, with help from China's manufacturing data, but upside is limited. Yen is turning softer again after this week's rebound is losing momentum. Sterling is holding on to gains against Euro and Swiss Franc, as well as Dollar. Meanwhile, Canadian Dollar is sluggish together with New Zealand Dollar.

Technically, Euro is clearly weaker this week after downside surprising in France and Germany inflation data. Yet, EUR/CHF is still working hard to form a bottom and focuses will be on 0.9760 minor resistance today. Firm break there should confirm short term bottoming at 0.9670 and bring stronger rebound back to 0.9797/9878 resistance zone. The next move will depend on markets' reaction to today's Eurozone CPI data.

In Asia, Nikkei closed up 0.84%. Hong Kong HSI is up 0.54%. China Shanghai SSE is up 0.28%. Singapore Strait Times is up 0.12%. Japan 10-year JGB yield is down -0.0081 at 0.425. Overnight, DOW dropped -0.41%. S&P 500 dropped -0.61%. NASDAQ dropped -0.63%. 10-year yield dropped -0.063 to 3.637.

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

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.3545; (P) 1.3599; (R1) 1.3629; More....

USD/CAD is staying in range below 1.3653 and intraday bias remains neutral. Price actions from 1.3976 are seen as a triangle consolidation pattern. Above 1.3666 will target 1.3860 resistance first. Firm break of 1.3860 will argue that larger up trend is ready to resume through 1.3976 high.

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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
23:50 JPY Capital Spending Q1 11.00% 5.50% 7.70%
00:30 JPY Manufacturing PMI May F 50.6 50.8 50.8
01:30 AUD Private Capital Expenditure Q1 2.40% 1.10% 2.20% 3.00%
01:45 CNY Caixin Manufacturing PMI May 50.9 49.5
06:00 CHF Trade Balance (CHF) Apr 2.6B 3.73B 4.53B
06:00 EUR Germany Retail Sales M/M Apr 0.80% 0.90% -2.40% -2.20%
07:30 CHF Manufacturing PMI May 44.5 45.3
07:45 EUR Italy Manufacturing PMI May 45.8 46.8
07:50 EUR France Manufacturing PMI May F 46.1 46.1
07:55 EUR Germany Manufacturing PMI May F 42.9 42.9
08:00 EUR Eurozone Manufacturing PMI May F 44.6 44.6
08:30 GBP Manufacturing PMI May F 46.9 46.9
08:30 GBP Mortgage Approvals Apr 54K 52K
08:30 GBP M4 Money Supply M/M Apr -0.20% -0.60%
09:00 EUR Eurozone Unemployment Rate Apr 6.50% 6.50%
09:00 EUR Eurozone CPI Y/Y May P 6.30% 7.00%
09:00 EUR Eurozone CPI Core May P 5.50% 5.60%
11:30 EUR ECB Monetary Policy Meeting Accounts
11:30 USD Challenger Job Cuts May 175.90%
12:15 USD ADP Employment Change May 167K 296K
12:30 USD Initial Jobless Claims (May 26) 236K 229K
12:30 USD Nonfarm Productivity Q1 -2.70% -2.70%
12:30 USD Unit Labor Costs Q1 6.30% 6.30%
13:30 CAD Manufacturing PMI May 50.2
13:45 USD Manufacturing PMI May F 48.5 48.5
14:00 USD ISM Manufacturing PMI May 47 47.1
14:00 USD ISM Manufacturing Prices Paid May 52.5 53.2
14:00 USD ISM Manufacturing Employment Index May 50.2
14:00 USD Construction Spending M/M Apr 0.10% 0.30%
14:30 USD Natural Gas Storage 106B 96B
15:00 USD Crude Oil Inventories -1.4M -12.5M