Dollar Back in Control on Risk Aversion and Rising Yields

Action Insight Daily Report 9-1-22

Dollar Back in Control on Risk Aversion and Rising Yields

Dollar is back in control in Asian session, with some help from risk averse sentiment. Euro is staying firm against Sterling and Swiss Franc, and is picking up upside momentum against commodity currencies. In particular, Aussie is sold off on poor manufacturing data from both Australia and China. Yen is also weak along with renewed rally in benchmark treasury yields.

Technically, US 10-year yield will be a focus today as could be trying to break away from 3.101 resistance decisively. In that case, a near term rally extension would be set up towards 3.483 high. Such development could push Yen pairs higher. In particular, USD/JPY could follow and break through 139.37 resistance in sustained way to resume larger up trend.

In Asia, at the time of writing, FTSE is down -1.05%. DAX is down -0.97%. CAC is down -1.37%. Japan 10-year JGB yield is up 0.0057 at 0.236. Overnight, DOW dropped -0.88%. S&P 500 dropped -0.78%. NASDAQ dropped -0.56%. 10-year yield rose 0.023 to 3.133.

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

USD/JPY Daily Outlook

Daily Pivots: (S1) 138.48; (P) 138.75; (R1) 139.22; More...

Intraday bias in USD/JPY is back on the upside as rise from 130.38 resumes and picks up some momentum. Focus is now on 139.37 resistance. Sustained break there will confirm up trend resumption. Next target is 100% projection of 126.35 to 139.37 from 130.38 at 143.40. However, break of 137.70 resistance turned support will suggest rejection from 139.37, and turn bias to the downside to extend the corrective pattern from there with another falling leg.

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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 52.5
23:50 JPY Capital Spending Q2 4.60% 3.00% 3.00%
00:30 JPY Manufacturing PMI Aug F 51.5 51 51
01:30 AUD Private Capital Expenditure Q2 -0.30% 1.10% -0.30%
01:45 CNY Caixin Manufacturing PMI Aug 49.5 50.2 50.4
06:00 EUR Germany Retail Sales M/M Jul -0.40% -1.60%
06:30 CHF Real Retail Sales Y/Y Jul 0.90% 1.20%
06:30 CHF CPI M/M Aug 0.40% 0.00%
06:30 CHF CPI Y/Y Aug 3.50% 3.40%
07:30 CHF SVME - PMI Aug 58
07:45 EUR Italy Manufacturing PMI Aug 48.4 48.5
07:50 EUR France Manufacturing PMI Aug F 49 49
07:55 EUR Germany Manufacturing PMI Aug F 49.8 49.8
08:00 EUR Eurozone Manufacturing PMI Aug F 49.7 49.7
08:00 EUR Italy Unemployment Jul 8.10% 8.10%
08:30 GBP Manufacturing PMI Aug F 46 46
09:00 EUR Eurozone Unemployment Rate Jul 6.60% 6.60%
11:30 USD Challenger Job Cuts Y/Y Aug 25.81K
12:30 USD Initial Jobless Claims (Aug 26) 250K 243K
12:30 USD Nonfarm Productivity Q2 -4.60% -4.60%
12:30 USD Unit Labor Costs Q2 10.60% 10.80%
12:30 CAD Building Permits M/M Jul -1.50% -1.50%
13:30 CAD Manufacturing PMI Aug 52.5
13:45 USD Manufacturing PMI Aug F 51.3 51.3
14:00 USD ISM Manufacturing PMI Aug 52.6 52.8
14:00 USD ISM Manufacturing Prices Paid Aug 59.5 60
14:00 USD ISM Manufacturing Employment Index Aug 49.9
14:00 USD Construction Spending M/M Jul -0.10% -1.10%
14:30 USD Natural Gas Storage 58B 60B