Markets Staying in Tight Range, Inflation and Sentiment Data to Highlight the Week
| Action Insight Daily Report 6-26-23 |
Markets Staying in Tight Range, Inflation and Sentiment Data to Highlight the Week |
The financial markets are rather steady in Asian session today, showing little reaction to the brief "uprising" in Russia. Major indexes generally traded in tight range, with the exception of China which is just catching up the holidays on Thursday and Friday. In the currency markets, Aussie is the worst performer for now, followed by Kiwi by a distant. Yen is the stronger one, followed by Canadian. But overall, other than a few Aussie pairs, major pairs and crosses are bounded inside Friday's range. Technically, AUD/NZD's decline from 1.1050 extended lower today and it's now pressing 55 D EMA (now at 1.0846). Sustained trading below the EMA would pave the way down towards 1.0556 support. For now, break of 1.0469 is not envisaged unless further downside acceleration is seen. However, if this scenario does come to fruition, a deeper fall in AUD/NZD could potentially hinder the recovery of Aussie elsewhere. In Asia, Nikkei closed down -0.25%. Hong Kong HSI is down -0.40%. China Shanghai SSE is down -1.51%. Singapore Strait Times is up 0.02%. Japan 10-year JGB yield is down further by -0.126 at 0.359. |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.3141; (P) 1.3183; (R1) 1.3224; More.... Further decline is expected in USD/CAD with 1.3268 resistance intact. Current fall from 1.3653 should target 100% projection of 1.3860 to 1.3299 from 1.3653 at 1.3092. Decisive break there will target 161.8% projection at 1.2745. On the upside, however, break of 1.3268 resistance should now indicate short term bottoming, and turn bias back to the upside for rebound. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 23:50 | JPY | Corporate Service Price Index Y/Y May | 1.60% | 1.80% | 1.60% | | 23:50 | JPY | BoJ Summary of Opinions | | 08:00 | EUR | Germany IFO Business Climate Jun | 91.2 | 91.7 | | 08:00 | EUR | Germany IFO Current Assessment Jun | 93.5 | 94.8 | | 08:00 | EUR | Germany IFO Expectations Jun | 88 | 88.6 |
|
|
|
