Dollar Breaking Out Against Commodity Currencies
| Action Insight Daily Report 10-11-22 |
Dollar Breaking Out Against Commodity Currencies |
Dollar extends its near term rally in Asian session, with support from risk-off sentiment, while US 10-year yield is flirting with 4% handle. Yen is also firm, and has the potential to overwhelm the greenback if Japan steps into the markets again. Commodity currencies are the weakest one so far, with Aussie being the worst. European majors are mixed for now. Technically, Dollar's rally is making progress with break of 1.3832 resistance in USD/CAD and 0.9964 resistance in USD/CHF. NZD/USD has also resumed down trend by falling through 0.5563 support. Near term outlook will stay bearish in NZD/USD as long as 0.5812 support holds. Next target is pandemic low at 0.5467. In Asia, at the time of writing, Nikkei is down 2.54%. Hong Kong HSI is down -1.56%. China Shanghai SSE is up 0.40%. Singapore Strait times is down -0.12%. Japan 10-year JGB yield is down -0.0011 at 0.253. |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.3728; (P) 1.3756; (R1) 1.3808; More... USD/CAD's rally resumed by breaking 1.3832 and intraday bias is back on the upside. Current up trend should target 161.8% projection of 1.2005 to 1.2947 from 1.2401 at 1.3925. Decisive break there will target 200% projection at 1.4285. On the downside,e below 1.3701 minor support will turn intraday bias neutral first. but outlook will stays bullish as long as 1.3501 support holds, in case of retreat. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:01 | GBP | BRC Like-For-Like Retail Sales Y/Y Sep | 1.80% | 0.50% | | 23:30 | AUD | Westpac Consumer Confidence Oct | -0.90% | 3.90% | | 23:50 | JPY | Current Account (JPY) Aug | -0.53T | -0.47T | -0.63T | | 00:30 | AUD | NAB Business Confidence Sep | 5 | 10 | | 00:30 | AUD | NAB Business Conditions Sep | 25 | 20 | | 06:00 | GBP | Claimant Count Change Sep | 4.2K | 6.3K | | 06:00 | GBP | ILO Unemployment Rate (3M) Aug | 3.60% | 3.60% | | 06:00 | GBP | Average Earnings Excluding Bonus 3M/Y Aug | 5.30% | 5.20% | | 06:00 | GBP | Average Earnings Including Bonus 3M/Y Aug | 5.90% | 5.50% | | 08:00 | EUR | Italy Industrial Output M/M Aug | 0.20% | 0.40% |
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