Markets Shrug Weak China Services Data, Euro Soft ahead of Investor Confidence
Action Insight Daily Report 7-5-21

Markets Shrug Weak China Services Data, Euro Soft ahead of Investor Confidence

Dollar and Yen recover some ground in mixed Asian session today. Stocks in Japan and Hong Kong are slightly down by China and Singapore are steady. Much weaker than expected services data from China triggered little reactions. Swiss Franc is retreating against other major currencies but losses are limited. Commodity currencies are softening somewhat. With US on holiday, main focus will be on Eurozone Sentix investor confidence.

Technically, we'd see that Euro is a bit vulnerable in crosses. With rebound from 1.0863 likely completed at 1.0985, EUR/CHF would be heading back to retest 1.0863. Such development could drag Euro lower, in particular against commodity currencies. Eyes will be on 1.4580 low in EUR/CAD first, and then 1.5699 support in EUR/AUD. Break of these levels will add to near term bearishness in Euro.

In Asia, at the time of writing, Nikkei is down -0.60%. Hong Kong HSI is down -0.22%. China Shanghai SSE is up 0.25%. Singapore Strait Times is up 0.22%. Japan 10-year JGB yield is down -0.0086 at 0.038.

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

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EUR/AUD Daily Outlook

Daily Pivots: (S1) 1.5723; (P) 1.5800; (R1) 1.5842; More...

Intraday bias in EUR/AUD remains neutral for the moment. On the downside, break of 1.5699 support will suggest rejection by 38.2% retracement of 1.6827 to 1.5250 at 1.5852. Intraday bias will be turned back to the downside for 1.5418 support first. Break there should confirm completion of consolidation pattern from 1.5250. On the upside, break of 1.5877 will extend the near term rebound to 1.6033 key support turned resistance.

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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
22:30 AUD AiG Performance of Construction Index Jun 55.5 58.3
01:30 AUD Retail Sales M/M May 0.40% 0.10% 0.10%
01:30 AUD Building Permits M/M May -7.10% -5.00% -8.60% -5.70%
01:45 CNY Caixin Services PMI Jun 50.3 55.7 55.1
07:45 EUR Italy Services PMI Jun 56 53.1
07:50 EUR France Services PMI Jun F 57.4 57.4
07:55 EUR Germany Services PMI Jun F 58.1 58.1
08:00 EUR Eurozone Services PMI Jun F 58 58
08:30 EUR Eurozone Sentix Investor Confidence Jul 30.2 28.1
08:30 GBP Services PMI Jun F 61.7 61.7
14:30 CAD BoC Business Outlook Survey