Mild Dollar Recovery; Mixed Risk Markets; Eyes on RBNZ Hold and BoC Hike
| Action Insight Daily Report 7-10-23 |
Mild Dollar Recovery; Mixed Risk Markets; Eyes on RBNZ Hold and BoC Hike |
Dollar recovers mildly during today's Asian trading session but remains generally weak. Concurrently, Japanese Yen has begun to pare back some of its late rally from last week, but there is no sign of sustained selling. Risk markets are showing a mixed performance, reacting minimally to China's data that indicate escalating deflation risks. Notably, the majority of major currency pairs stays bounded within Friday's range, with New Zealand Dollar being an exception. Kiwi appears to be softening slightly as market anticipates RBNZ to maintain its current policy rate later in the week. Conversely, Canadian Dollar is experiencing a slight firming, buoyed by rise in oil prices and anticipated BoC rate hike. Meanwhile, European majors show no clear direction as of now. Technically, WTI crude oil's break of 72.57 resistance suggests that triangle consolidation from 74.74 has possibly completed at 66.94 already. Further rise is now in favor to 74.74 resistance first. Firm break there will target 100% projection 63.67 to 74.74 from 66.94 at 78.01. It's too early to talk about larger bullish trend reversal in oil. So, focuses will be on topping signal around 78.01 projection level. In Asia, at the time of writing, Nikkei is down -0.14%. Hong Kong HSI is up 0.75%. China Shanghai SSE is up 0.15%. Singapore Strait Times is up 0.34%. Japan 10-year JGB yield is up 0.0333 at 0.470. |
AUD/USD Daily Report Daily Pivots: (S1) 0.6640; (P) 0.6671; (R1) 0.6723; More... AUD/USD dips mildly today but stays inside established range above 0.6594. Intraday bias remains neutral for the moment. With 0.6710 resistance intact, further decline is in favor. On the downside, break of 0.6594 will resume the decline from 0.6898 to 0.6457 support next. Nevertheless, firm break of 0.6719 will turn bias back to the upside for stronger rebound. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 23:50 | JPY | Bank Lending Y/Y Jun | 3.20% | 3.50% | 3.40% | | 23:50 | JPY | Current Account (JPY) May | 1.70T | 1.87T | 1.90T | | 01:30 | CNY | CPI Y/Y Jun | 0.00% | 0.20% | 0.20% | | 01:30 | CNY | PPI Y/Y Jun | -5.40% | -5.00% | -4.60% | | 05:00 | JPY | Eco Watchers Survey: Outlook Jun | 53.6 | 54.8 | 55 | | 08:30 | EUR | Eurozone Sentix Investor Confidence Jul | -18.9 | -17 | | 12:30 | CAD | Building Permits M/M May | 7.30% | -18.80% | | 14:00 | USD | Wholesale Inventories May F | -0.10% | -0.10% |
|
|
|
