AUD/JPY Extends Rally, Dollar Turns Softer Again

Action Insight Daily Report 8-25-22

AUD/JPY Extends Rally, Dollar Turns Softer Again

Dollar turns softer in Asian session today, but stays in familiar range. Traders would likely remain cautious until Fed Chair Jerome Powell's speech at the Jackson Hole Symposium tomorrow. For now, Aussie and Kiwi are the stronger ones for the day. European majors and Canadian Dollar are soft too, next to Dollar.

Technically, AUD/JPY resumes the rise from 90.51 by breaking through 95.13 temporary top. The development affirms the case that whole corrective pattern from 96.86 has completed with three waves down to 90.51. Further rally should be seen through 95.68 resistance to retest 96.86 high. This will remain the favored case as long as 94.18 support holds. The question is whether this is an indication of return of risk rally.

In Asia, Nikkei rose 0.58%. Hong Kong HSI is up 1.54%. China Shanghai SSE is up 0.02%. Singapore Strait Times is up 0.37%. Japan 10-year JGB yield is up 0.0043 at 0.229. Overnight, DOW rose 0.18%. S&P 500 rose 0.29%. NASDAQ rose 0.41%. 10-year yield rose 0.052 to 3.106.

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

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.2943; (P) 1.2981; (R1) 1.3009; More...

Intraday bias in USD/CAD stays neutral for the moment and some more consolidations could be seen below 1.3062. But outlook is unchanged that corrective decline from 1.3222 should have completed with three waves down to 1.2726. Above 1.3062 will resume the rebound to retest 1.3222 high. However, break of 1.2826 support will dampen this view and turn bias back to the downside for 1.2726 and possibly below.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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22:45 NZD Retail Sales Q/Q Q2 -2.30% 1.70% -0.50%
22:45 NZD Retail Sales ex Autos Q/Q Q2 -1.60% 1.80% 0.00% -0.30%
23:50 JPY Corporate Service Price Index Y/Y Jul 2.10% 2.20% 2.00%
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12:30 USD Initial Jobless Claims (Aug 19) 256K 250K
12:30 USD GDP Annualized Q2 P -0.70% -0.90%
12:30 USD GDP Price Index Q2 P 8.70% 8.70%
14:30 USD Natural Gas Storage 54B 18B