Risk Sentiment Firms Up after Jobless Claims, Dollar Staying Weak
Action Insight Mid-Day Report 9-2-21

Risk Sentiment Firms Up after Jobless Claims, Dollar Staying Weak

Risk-on sentiment firms up slightly after better than expected jobless claims from the US. Dollar, Yen and Swiss Franc continue to trade as the weakest ones. On the other hand, New Zealand and Australian Dollars are the strongest. But the moves in risk markets are limited so far. Investors could turn cautious quickly again and stay calm before tomorrow's non-farm payroll report.

Technically, NZD/USD's break of 0.7087 resistance suggests that corrective pattern from 0.7463 could have completed with three waves down to 0.6804 already. Stronger rise would be seen back to 0.7315 resistance. Break will likely resume larger up trend from 0.5467 through 0.7463 high. We'll firstly see if NZD/USD's move could extend into next week. Secondly, we'll pay attention to whether AUD/USD would follow and break through 0.7425 resistance.

In Europe, at the time of writing, FTSE is up 0.01%. DAX is up 0.15%. CAC is up 0.13%. Germany 10-year yield is down -0.0203 at -0.390, staying above -0.4 handle. Earlier in Asia, Nikkei rose 0.33%. Hong Kong HSI rose 0.24%. China Shanghai SSE rose 0.84%. Singapore Strait Times rose 0.03%. Japan 10-year JGB yield rose 0.0039 to 0.035.

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EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1803; (P) 1.1830; (R1) 1.1866; More...

With 1.1778 minor support intact, intraday bias in EUR/USD remains mildly on the upside. Rise from 1.1663 short term bottom is on track to 1.1907 resistance first. Decisive break there will indicate that fall from 1.2265, as well as the consolidation pattern from 1.2348, have completed. Near term outlook will be turned bullish for 1.2265/2348 resistance. On the downside, break of 1.1778 resistance turned support will turn bias back to the downside for 1.1602/63 support zone instead.

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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
22:45 NZD Terms of Trade Index Q2 3.30% 0.30% 0.10%
23:50 JPY Monetary Base Y/Y Aug 14.90% 16.20% 15.40%
01:30 AUD Trade Balance (AUD) Jul 12.12B 10.10B 10.50B 11.11B
06:30 CHF Real Retail Sales Y/Y Jul -2.60% 0.20% 0.10%
06:30 CHF CPI M/M Aug 0.20% 0.10% -0.10%
06:30 CHF CPI Y/Y Aug 0.90% 0.80% 0.70%
07:00 CHF GDP Q/Q Q2 1.80% 1.90% -0.50% -0.40%
09:00 EUR Eurozone PPI M/M Jul 2.30% 1.20% 1.40%
09:00 EUR Eurozone PPI Y/Y Jul 12.10% 10.90% 10.20%
11:30 USD Challenger Job Cuts Y/Y Aug -86.40% -92.80%
12:30 CAD Building Permits M/M Jul -3.90% 1.50% 6.90%
12:30 CAD International Merchandise Trade (CAD) Jul 0.8B 1.7B 3.2B
12:30 USD Initial Jobless Claims (Aug 27) 340K 351K 353K 354K
12:30 USD Trade Balance (USD) Jul -70.1B -74.5B -75.7B -73.2B
12:30 USD Nonfarm Productivity Q2 2.10% 2.40% 2.30%
12:30 USD Unit Labor Costs Q2 1.30% 1.00% 1.00%
14:00 USD Factory Orders M/M Jul 0.40% 1.50%
14:30 USD Natural Gas Storage 25B 29B