Euro Upside Breakout, Aussie Shrugs RBA
Action Insight Daily Report 9-1-20

Euro Upside Breakout, Aussie Shrugs RBA

Euro trades broadly higher in Asian session as it finally takes out near term resistance against Dollar and Yen. Swiss Franc is following the common currency closely as second strongest. Gold is also tracking the Euro higher too. Dollar and Yen continue to stay under broad based pressure. The limelight is currently off Australian Dollar as markets shrug off RBA monetary policy decisions, as well as the data released from Australia and China.

Technically, a question now is whether Euro buying will spread to other pairs. Levels to watch included 0.8974 minor resistance in EUR/GBP, 1.6297 minor resistance in EUR/AUD and 1.5646 minor resistance in EUR/CAD. 1.0849 resistance in EUR/CHF is also a key level but we're not expecting a break there for now yet.

In Asia, currently, Nikkei is down -0.03%. Hong Kong HSI is up 0.08%. China Shanghai SSE is down -0.05%. Singapore Strait Times is down -0.61%. Japan 10-year JGB yield is down -0.0096 at 0.045. Overnight, DOW dropped -0.78%. S&P 500 dropped -0.22%. But NASDAQ rose 0.68% to 11755.45, new record. 10-year yield dropped -0.036 to 0.693, back below 0.7% handle.

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EUR/USD Daily Outlook

Daily Pivots: (S1) 1.1892; (P) 1.1929; (R1) 1.1974; More.....

EUR/USD's rally finally resumed by taking out 1.1965 resistance. Intraday bias is back on the upside. Next near term target is 61.8% projection of 1.1255 to 1.1965 from 1.1762 at 1.2201. On the downside, break of 1.1762 support is needed to indicate short term topping. Otherwise, outlook will remain bullish in case of retreat.

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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 Mfg Index Aug 49.3 53.5
22:45 NZD Building Permits M/M Jul -4.50% 0.50% 0.70%
23:30 JPY Unemployment Rate Jul 2.90% 3.10% 2.80%
23:50 JPY Capital Spending Q2 -11.30% 4.30% 0.10%
0:30 JPY Manufacturing PMI Aug F 47.2 46.6 46.6
1:30 AUD Current Account Balance (AUD) Q2 17.7B 13.0B 8.4B 9.0B
1:30 AUD Building Permits M/M Jul 12.00% -0.50% -4.90% -4.20%
1:45 CNY Caixin Manufacturing PMI Aug 53.1 51.3 52.8
4:30 AUD RBA Rate Decision 0.25% 0.25% 0.25%
7:45 EUR Itay Manufacturing PMI Aug 51.2 51.9
7:50 EUR France Manufacturing PMI Aug F 49 49
7:55 EUR Germany Manufacturing PMI Aug F 0 53
7:55 EUR Germany Unemployment Change Aug -3K -18K
7:55 EUR Germany Unemployment Rate Aug 6.50% 6.40%
8:00 EUR Eurozone Manufacturing PMI Aug F 51.7 51.7
8:00 EUR Itay Unemployment Rate Jul 9.10% 8.80%
8:30 GBP Manufacturing PMI Aug F 55.3 55.3
8:30 GBP Mortgage Approvals Jul 55K 40K
8:30 GBP M4 Money Supply M/M Jul 1.20% 1.00%
9:00 EUR Eurozone Unemployment Rate Jul 8.00% 7.80%
9:00 EUR Eurozone CPI Y/Y Aug P 0.20% 0.40%
9:00 EUR Eurozone CPI Core Y/Y Aug P 1.00% 1.20%
13:30 CAD Manufacturing PMI Aug 52.9
13:45 USD Manufacturing PMI Aug F 53.6 53.6
14:00 USD ISM Manufacturing PMI Aug 54 54.2
14:00 USD ISM Manufacturing Prices Paid Aug 52 53.2
14:00 USD ISM Manufacturing Employment Index Aug 48.3 44.3
14:00 USD Construction Spending M/M Jul 0.70% -0.70%