Dollar Firm in Right Range as FOMC Rate Hike Awaited
Action Insight Daily Report 6-15-22

Dollar Firm in Right Range as FOMC Rate Hike Awaited

The forex markets are steady in tight range in Asia, while Dollar remains the strongest one for the week. Main focus today is on whether Fed would deliver a 75bps hike as markets fully priced in, or stick to its "original plan" of 50bps hike per meeting. Yen is staying as the second strongest on risk aversion while Euro is third. Sterling remains the worst performing, followed by other commodity currencies.

Technically, it should be pointed out that Dollar has yet to take out near term resistance level against most major currencies. The levels include 1.0348 in EUR/USD, 0.6828 support in AUD/USD, 1.0063 resistance in USD/CHF and 1.3075 resistance in USD/CAD. These are the levels for the greenback to overcome.

In Asia, at the time of writing, Nikkei is down -0.83%. Hong Kong HSI is up 1.42%. Chinas Shanghai SSE is up 1.41%. Singapore Strait Times is up 0.62%. Japan 10-year JGB yield is up 0.019 at 0.275, after touching 0.3 briefly. Overnight, DOW dropped -0.50%. S&P 500 dropped -0.38%. NASDAQ rose 0.18%. 10-year yield rose 0.117 to 3.483.

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

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.2890; (P) 1.2932; (R1) 1.2999; More...

Intraday bias in USD/CAD remains on the upside for 1.3075 resistance. Firm break there will resume medium term rally and sustained trading above 1.3022 fibonacci level will carry larger bullish implications. Next target is 100% projection of 1.2005 to 1.2947 from 1.2401 at 1.3343. On the downside, below 1.2865 minor support will delay the bullish case and turn bias neutral first.

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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 Current Account (NZD) Q1 -6.14B -5.96B -7.26B -7.34B
23:50 JPY Machinery Orders M/M Apr 10.80% -1.50% 7.10%
00:30 AUD Westpac Consumer Confidence Jun -4.50% -5.60%
02:00 CNY Industrial Production Y/Y May 0.70% -1.00% -2.90%
02:00 CNY Retail Sales Y/Y May -6.70% -7.30% -11.10%
02:00 CNY Fixed Asset Investment YTD Y/Y May 6.20% 6.00% 6.80%
04:30 JPY Tertiary Industry Index M/M Apr 0.70% 0.80% 1.30% 1.70%
06:30 CHF Producer and Import Prices M/M May 0.60% 1.30%
06:30 CHF Producer and Import Prices Y/Y May 6.90% 6.70%
07:00 CHF SECO Economic Forecasts
09:00 EUR Eurozone Trade Balance (EUR) Apr -14.5B -17.6B
09:00 EUR Eurozone Industrial Production M/M Apr 0.50% -1.80%
12:15 CAD Housing Starts s.a Y/Y May 265K 267K
12:30 USD NY Empire State Manufacturing Index Jun 5 -11.6
12:30 USD Retail Sales M/M May 0.20% 0.90%
12:30 USD Retail Sales ex Autos M/M May 0.80% 0.60%
12:30 USD Import Price Index M/M May 1.10% 0.00%
14:00 USD Business Inventories Apr 1.20% 2.00%
14:00 USD NAHB Housing Market Index Jun 68 69
14:30 USD Crude Oil Inventories -2.3M 2.0M
18:00 USD Fed Interest Rate Decision 1.50% 1.00%
18:30 USD FOMC Press Conference