Dollar Surged as Fed Powell Indicated Higher Terminal Rate, BoE Next
| Action Insight Mid-Day Report 11-2-22 |
Dollar Surged as Fed Powell Indicated Higher Terminal Rate, BoE Next |
After initial jitters, Dollar rose broadly overnight as Fed Chair Jerome Powell indicated the possibility of higher terminal rate in the current tightening cycle. US stocks ended notably lower and risk-off sentiment carried on in Asian session. Yen is also rising on risk aversion. Nevertheless, markets are taking a breather for now, with focus firstly turned to BoE rate decision today. Besides, ISM services in US session, as well as non-farm payroll employment data tomorrow has the potential to trigger more volatility. Technically, the breaks of 0.9847 minor support in EUR/USD, 0.6355 minor support in AUD/USD, and 1.0030 minor resistance in USD/CHF suggest Dollar buying in coming back. Gold, too, might be heading back to 1614.60 low as recovery faltered at 1674.72, and even a break there, if Dollar builds up more upside momentum. In Asia, at the time of writing, Hong Kong HSI is down -2.70%. Chin Shanghai SSE is down -0.10%. Singapore Strait Times is down -1.24%. Japan is on holiday. Overnight, DOW dropped -1.55%. S&P 500 dropped -2.50%. NASDAQ dropped -3.36%. 10-year yield rose 0.007 to 4.059, after dipping to 3.976. |
AUD/USD Daily Report Daily Pivots: (S1) 0.6301; (P) 0.6396; (R1) 0.6446; More... AUD/USD's break of 0.6355 minor support suggests that corrective recovery from 0.6169 has completed at 0.6521, missing 0.6539 resistance. Rejection by falling 55 day EMA maintains near term bearishness. Intraday bias is back on the downside for retesting 0.6169. Firm break there will resume larger down trend to 138.2% projection of 0.7660 to 0.6680 from 0.7135 at 0.5781.For now, risk will stay on the downside as long as 0.6539 resistance holds. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 00:30 | AUD | Trade Balance (AUD) Sep | 12.44B | 9.00B | 8.32B | 8.66B | | 01:45 | CNY | Caixin Services PMI Oct | 48.4 | 49.2 | 49.3 | | 07:30 | CHF | CPI M/M Oct | 0.20% | -0.20% | | 07:30 | CHF | CPI Y/Y Oct | 3.20% | 3.30% | | 09:30 | GBP | Services PMI Oct F | 47.5 | 47.5 | | 10:00 | EUR | Eurozone Unemployment Rate Sep | 6.60% | 6.60% | | 11:30 | USD | Challenger Job Cuts Y/Y Oct | 67.60% | | 12:00 | GBP | BoE Interest Rate Decision | 3.00% | 2.25% | | 12:00 | GBP | MPC Official Bank Rate Votes | 9--0--0 | 9--0--0 | | 12:30 | CAD | Building Permits M/M Sep | -4.90% | 11.90% | | 12:30 | CAD | Trade Balance (CAD) Sep | 1.1B | 1.5B | | 12:30 | USD | Trade Balance (EU) Sep | -70.3B | -67.4B | | 12:30 | USD | Initial Jobless Claims (Oct 28) | 215K | 217K | | 12:30 | USD | Nonfarm Productivity Q3 P | -0.10% | -4.10% | | 12:30 | USD | Unit Labor Costs Q3 P | 4.00% | 10.20% | | 13:45 | USD | Services PMI Oct F | 46.6 | 46.6 | | 14:00 | USD | ISM Services PMI Oct | 55.2 | 56.7 | | 14:00 | USD | Factory Orders M/M Sep | 0.30% | 0.00% | | 14:30 | USD | Natural Gas Storage | 99B | 52B |
|
|
|
