Dollar Extended Rally Tapering Talks, Staying Firm
Action Insight Daily Report 8-10-21

Dollar Extended Rally Tapering Talks, Staying Firm

Dollar's rally continued last week as supported by hawkish comments from Fed officials. Expectations for tapering this fall continued to build up. Swiss Franc is trading broadly lower, as the pull back against Euro accelerated. Meanwhile, Australian is also trading lower on poor business confidence data. Focus will turn to Germany economic sentiment first, with an eye on any more comments from Fed officials.

Technically, while Dollar's rally continued, the strength against commodity currencies and Sterling is not too apparent yet. AUD/USD would have to break through 0.7288 low to show Dollar's underlying strength. Also, USD/CAD will have to break through 1.2605 minor resistance while GBP/USD will have to break through 1.3766 minor support. Otherwise, Dollar's rally is still a bit half-hearted.

In Asia, Nikkei closed up 0.25%. Hong Kong HSI is up 0.75%. China Shanghai SSE is up 0.52%. Singapore Strait Times is up 0.69%. Japan 10-year JGB yield is up 0.0094 at 0.024. Overnight, DOW dropped -0.30%. S&P 500 dropped -0.09%. NASDAQ rose 0.16%. 10-year yield rose 0.027 to 1.317, back above 1.3 handle.

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AUD/USD Daily Report

Daily Pivots: (S1) 0.7317; (P) 0.7340; (R1) 0.7353; More...

AUD/USD drops mildly but stays in consolidation from 0.7288. Intraday bias remains neutral for the moment. Outlook stays bearish as long as 0.7443 resistance holds. On the downside, break of 0.7288 will resume the fall from 0.8006 to 161.8% projection of 0.8006 to 0.7530 from 0.7890 at 0.7120 next. On the upside, break of 0.7443 will bring stronger rebound to 0.7530 support turned resistance instead.

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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
23:01 GBP BRC Like-For-Like Retail Sales Y/Y Jul 4.70% 7.20% 6.70%
1:30 AUD NAB Business Confidence Jul -8 11
1:30 AUD NAB Business Conditions Jul 11 24
5:00 JPY Eco Watchers Survey: Current Jul 48.4 42.9 47.6
9:00 EUR Germany ZEW Economic Sentiment Aug 57 63.3
9:00 EUR Germany ZEW Current Situation Aug 30 21.9
9:00 EUR Eurozone ZEW Economic Sentiment Aug 72 61.2
10:00 USD NFIB Business Optimism Index Jul 102.3 102.5
12:30 USD Nonfarm Productivity Q2 P 3.60% 5.40%
12:30 USD Unit Labor Costs Q2 P 1.20% 1.70%