Positive Sentiment Boosts NZD, USD Still Bounded in Consolidations

Action Insight Mid-Day Report 11-18-22

Positive Sentiment Boosts NZD, USD Still Bounded in Consolidations

Positive market sentiment boosts Kiwi, Aussie higher but Canadian is lagging far behind as dragged down by falling oil prices. Sterling is also firm after mixed retail sales data. On the other hand, Swiss Franc and Dollar are following Loonie as the next worst performer for the data. But after all, the greenback are still just engaging in consolidations. Euro and Yen are mixed for now. There shouldn't be any surprises in the final hours of the day, and the picture should pretty much be done.

Technically, NZD/USD is trying to extending the rise from 0.5511 and breached 0.6202 temporary top. Immediate focus is now on 38.2% retracement of 0.7463 (2021 high) to 0.5511 at 0.6257. Rejection by this fibonacci resistance will keep price actions from 0.5511 as a corrective move, and maintains medium term bearishness. However, sustained break of 0.6257 will add too the case of bullish trend reversal. We'd probably find out next week.

In Europe, at the time of writing, FTSE is up 0.87%. DAC is up 1.18%. CAC is up 1.27%. Germany 10-year yield is up 0.019 at 2.041. Earlier in Asia, Nikkei dropped -0.11%. Hong Kong HSI dropped -0.29%. China Shanghai SSE dropped -0.58%. Singapore Strait Times dropped -0.42%. Japan 10-year JGB yield rose 0.0050 to 0.254.

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USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 139.15; (P) 139.95; (R1) 141.01; More...

Intraday bias in USD/JPY remains neutral as consolidation from 137.66 temporary low is still in progress. In case of stronger recovery, upside should be limited below 145.16 support turned resistance. On the downside, break of 137.66 will resume the decline from 151.93, to 133.07 fibonacci level, as a correction to the larger up trend.

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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
23:30 JPY National CPI Core Y/Y Oct 3.60% 3.50% 3.00%
00:01 GBP GfK Consumer Confidence -44 -46 -47
07:00 GBP Retail Sales M/M Oct 0.60% 0.30% -1.40% -1.50%
07:00 GBP Retail Sales Y/Y Oct -6.10% -6.50% -6.90% -6.80%
07:00 GBP Retail Sales ex-Fuel M/M Oct 0.30% 0.60% -1.50%
07:00 GBP Retail Sales ex-Fuel Y/Y Oct -6.70% -6.70% -6.20% -6.10%
13:30 CAD Industrial Product Price M/M Oct 2.40% 0.60% 0.10%
13:30 CAD Raw Material Price Index Oct 1.30% 0.20% -3.20%
15:00 USD Existing Home Sales Oct 4.36M 4.71M