Kiwi Surges on RBNZ, Focus on BoC Next
Action Insight Daily Report 7-14-21

Kiwi Surges on RBNZ, Focus on BoC Next

New Zealand Dollar rises broadly after RBNZ halts its asset purchase program. The movement also takes Aussie slightly higher. On the other hand, Dollar is not quite able to extend the post-CPI rally, and softens slightly. European majors are currently mixed. Focus will now turn to BoC policy decision and the reaction in Canadian Dollar next.

Technically, EUR/USD's break of 1.1780 temporary low suggests resumption of recent decline. But corresponding levels in GBP/USD, AUD/USD, USD/CHF and USD/CAD are still holding. On the other hand, EUR/GBP has taken out 0.8529 support to resume the choppy fall from 0.8718. EUR/CHF has also broken 1.0823 support to resume the fall from 1.1149. Hence, the fall in EUR/USD is more due to weakness in Euro for now.

In Asia, at the time of writing, Nikkei is trading down -0.26%. Hong Kong HSI is down -0.56%. China Shanghai SSE is down -0.48%. Singapore Strait Times is down -0.07%. Japan 10-year JGB yield is down -0.0040 at 0.021. Overnight, DOW dropped -0.31%. S&P 500 dropped -0.35%. NASDAQ dropped -0.38%. 10-year yield rose 0.052 to 1.415.

Full Report Here

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

BOC Preview - Hawkish Stance to Maintain with More Tapering
RBNZ Preview - Strong GDP Growth and Inflation Expectations to Anchor RBNZ Optimism
CFTC Commitments of Traders - Traders Increased Bets in USD Futures amidst Price Rebound
Central Bank Views | China Watch | Oil N' Gold | Special Topics

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.2458; (P) 1.2499; (R1) 1.2554; More...

Intraday bias in USD/CAD remains neutral as consolidation from 1.2589 is extending. Another rise is still in favor as long as 1.2301 support holds. Break of 1.2589 will target 1.2653 structural resistance to confirm larger bullish reversal. However, on the downside, break of 1.2301 support will dampen the bullish case and turn bias back to the downside for 1.2005 low instead.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

Recommended Readings

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What Does China's GDP Mean for the Aussie?

Bank of Canada to Taper Again as Loonie Succumbs to Delta Concerns

Fundamental Analysis | Technical Analysis
In-depth Reports
What Does Central Bank Divergence Mean for FX?
ECB Strategic Review: Striving for Symmetry
FOMC Minutes Reveals that QE Tapering to Begin Later this Year
Can the Delta Variant Wreck Hopes of an End to Lockdowns?
Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
0:30 AUD Westpac Consumer Confidence Jul 1.50% -5.20%
2:00 NZD RBNZ Interest Rate Decision 0.25% 0.25% 0.25%
4:30 JPY Industrial Production M/M May F -6.50% -5.90% -5.90%
6:00 GBP CPI M/M Jun 0.20% 0.60%
6:00 GBP CPI Y/Y Jun 2.20% 2.10%
6:00 GBP Core CPI Y/Y Jun 2.00% 2.00%
6:00 GBP RPI M/M Jun 0.30% 0.30%
6:00 GBP RPI Y/Y Jun 3.40% 3.30%
6:00 GBP PPI Input M/M Jun 1.20% 1.10%
6:00 GBP PPI Input Y/Y Jun 10.80% 10.70%
6:00 GBP PPI Output M/M Jun 0.60% 0.50%
6:00 GBP PPI Output Y/Y Jun 4.80% 4.60%
6:00 GBP PPI Core Output M/M Jun 0.30% 0.40%
6:00 GBP PPI Core Output Y/Y Jun 3.20% 2.70%
9:00 EUR Eurozone Industrial Production M/M May 0.20% 0.80%
12:30 USD PPI M/M Jun 0.50% 0.80%
12:30 USD PPI Y/Y Jun 7.10% 6.60%
12:30 USD PPI Core M/M Jun 0.40% 0.70%
12:30 USD PPI Core Y/Y Jun 5.30% 4.80%
12:30 CAD Manufacturing Sales M/M May -1.10% -2.10%
14:00 CAD BoC Interest Rate Decision 0.25% 0.25%
14:30 USD Crude Oil Inventories -6.9M
15:15 CAD BoC Press Conference
18:00 USD Fed's Beige Book