Dollar's Commanding Surge Amid China's Property and Financial Tremors
| Action Insight Daily Report 8-14-23 |
Dollar's Commanding Surge Amid China's Property and Financial Tremors |
Dollar surges broadly today, breaking through near term support against Euro, 145 handle against Yen, as well as near high of the year against Chinese Yuan. Worries over China's property, as well as finance sector are weighing heavily down on sentiment. But Swiss Franc and Yen are not benefiting much from risk aversion as in early US session. Indeed, European majors are trading as the worst performers for now, while commodity currencies are trying to recover. That's a development that warrants more monitoring. Technically, both EUR/USD has taken out 1.0911 support while USD/CHF broke 0.8804 resistance. Both developments indicate resumption of Dollar's rebound. A focus is now on when GBP/USD would follow by breaking through 1.2618 support to resume the fall from 1.3141. The imminent question though revolves around tomorrow's UK job data – could this potentially breathe life into the Pound, triggering a rebound? In Europe, at the time of writing, FTSE is down -0.42%. DAX is up 0.30%. CAC is down -0.04%. Germany 10-year yield is up 0.0034 at 2.629. Earlier in Asia, Nikkei dropped -1.27%. Hong Kong HSI dropped -1.58%. China Shanghai SSE dropped -0.34%. Singapore Strait Times dropped -1.41%. Japan 10-year JGB yield rose 0.0296 to 0.619. |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0926; (P) 1.0965; (R1) 1.0988; More... Break of 1.0911 support indicates resumptions of fall from 1.1274. Intraday bias in EUR/USD is back on the downside for 1.0832 support. Sustained trading below there will target 1.0609/34 cluster support. On the upside, break of 1.1064 resistance is needed to indicate completion of the fall. Otherwise, outlook will stay cautiously bearish in case of recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:30 | NZD | Business NZ PSI Jul | 47.8 | 50.1 | 49.6 | | 06:00 | EUR | Germany Wholesale Price Index M/M Jul | -0.20% | -0.20% |
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