Yen Staying Weak in Muted Trading, Chinese Yuan Softens
Action Insight Mid-Day Report 8-28-23 |
Yen Staying Weak in Muted Trading, Chinese Yuan Softens |
Trading in the forex market today saw a tempered tone, with most major currencies trading in a tight range due to a sparse economic calendar. An early uplift in market sentiment was observed, largely attributed to China's strategic moves aimed at boosting investor confidence. This positive wave continued into the early US trading hours, though its broader effects remained contained. Australian and New Zealand Dollars are emerging as today's outperformers, closely shadowed by Euro and Sterling. In contrast, Japanese Yen recorded the most significant dip, with Swiss Franc and Dollar also trailing behind. Technically, while offshore Chinese Yuan's recovery in the past week appears to be losing momentum. 38.2% retracement of 7.1154 to 7.3491 at 7.2598 could provide a floor to USD/CNH's pull back. Break of 7.3165 would bring stronger rebound to retest 7.3491 high at least. Decisive break will resume larger rally to 7.3745 key resistance. Risk aversion in China and Asia could come back if the stronger bounce in USD/CNH is accompanied by poor PMI data from China later in the week. In Europe, at the time of writing, FTSE is up 0.07%. DAX is up 0.76%. CAC is up 1.00%. Germany 10-year yield is down -0.010 at 2.551. Earlier in Asia, Nikkei rose 1.73%. Hong Kong HSI rose 0.97%. China Shanghai SSE rose 1.13%. Singapore Strait times rose 0.75%. Japan 10-year JGB yield rose 0.0076 to 0.668. |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 145.89; (P) 146.26; (R1) 146.79; More... Outlook in USD/JPY remains unchanged and intraday bias stays on the upside. Sustained break of 61.8% projection of 129.62 to 145.06 from 137.22 at 146.76 will pave the way to retest 151.93 high. For now, outlook will stays cautiously bullish as long as 144.52 support holds, in case of retreat. | |
GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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01:30 | AUD | Retail Sales M/M Jul | 0.50% | 0.30% | -0.80% | 08:00 | EUR | Eurozone M3 Money Supply Y/Y Jul | 0.40% | 0.00% | 0.60% |
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