Sentiment Lifted by Fed Powell, Dollar Down While Stocks Up
| Action Insight Daily Report 12-1-22 |
Sentiment Lifted by Fed Powell, Dollar Down While Stocks Up |
Market are back in full risk-on mode after Fed Chair Jerome Powell affirmed that smaller rate hike would be delivered in December. Positive sentiment continued in Asia with China softening some of its pandemic restrictions. Dollar is in broad based selloff, followed by Canadian Dollar and Swiss Franc. Yen is currently the strongest one, responding more to falling treasury yields. Australian and New Zealand Dollar are the next strongest on positive sentiment and development in China, while Euro trails. Technically, breaks outs are seen in AUD/USD through 0.6769 resistance and USD/JPY through 137.46 support. Now, focus will be on when EUR/USD will break through 1.0496 resistance, GBP/USD through 1.2152 resistance and USD/CHF through 0.9355 support. Also, break of 1786.83 resistance will resume the rise from 1616.51 to 61.8% projection of 1616.51 to 1786.83 from 1728.43 at 1833.73. If happens, that would be another indication of broad based Dollar weakness. In Asia, Nikkei rose 1.01%. Hong Kong HSI is up 1.31%. China Shanghai SSE is up 0.56%. Singapore Strait Times is up 0.39%. Japan 10-year JGB yield is up 0.0075 at 0.258. Overnight, DOW rose 2.18%. S&P 500 rose 3.09%. NASDAQ rose 4.41%. 10-year yield dropped -0.045 to 3.703. |
AUD/USD Daily Report Daily Pivots: (S1) 0.6705; (P) 0.6753; (R1) 0.6836; More... AUD/USD's rally resumed by breaking through 0.6796 and intraday bias is back on the upside. Next target is 0.6871 fibonacci level first. Break there will target 61.8% projection of 0.6271 to 0.6796 from 0.6641 at 0.6965. For now, near term outlook will stay bearish as long as 0.6641 support holds, in case of retreat. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:30 | AUD | AiG Performance of Mfg Index Nov | 44.7 | 49.6 | | 00:30 | AUD | Private Capital Expenditure Q3 | -0.60% | 1.20% | -0.30% | | 00:30 | JPY | Manufacturing PMI Nov F | 49 | 49.4 | 49.4 | | 01:45 | CNY | Caixin Manufacturing PMI Nov | 49.4 | 48.6 | 49.2 | | 05:00 | JPY | Consumer Confidence Nov | 28.6 | 30.2 | 29.9 | | 07:00 | EUR | Germany Retail Sales M/M Oct | -0.60% | 0.90% | | 07:30 | CHF | Real Retail Sales Y/Y Oct | 3.30% | 3.20% | | 07:30 | CHF | CPI M/M Nov | 0.20% | 0.10% | | 07:30 | CHF | CPI Y/Y Nov | 2.60% | 3.00% | | 08:30 | CHF | Manufacturing PMI Nov | 53 | 54.9 | | 08:45 | EUR | Italy Manufacturing PMI Nov | 47.3 | 46.5 | | 08:50 | EUR | France Manufacturing PMI Nov F | 49.1 | 49.1 | | 08:55 | EUR | Germany Manufacturing PMI Nov F | 46.7 | 46.7 | | 09:00 | EUR | Eurozone Manufacturing PMI Nov F | 47.3 | 47.3 | | 09:30 | GBP | Manufacturing PMI Nov F | 46.2 | 46.2 | | 10:00 | EUR | Eurozone Unemployment Rate Oct | 6.60% | 6.60% | | 12:30 | USD | Challenger Job Cuts Y/Y Nov | 48.30% | | 13:30 | CAD | Labor Productivity Q/Q Q3 | 0.30% | 0.20% | | 13:30 | USD | Personal Income M/M Oct | 0.40% | 0.40% | | 13:30 | USD | Personal Spending Oct | 0.80% | 0.60% | | 13:30 | USD | PCE Price Index M/M Oct | 0.50% | 0.30% | | 13:30 | USD | PCE Price Index Y/Y Oct | 6.20% | 6.20% | | 13:30 | USD | Core PCE Price Index M/M Oct | 0.40% | 0.50% | | 13:30 | USD | Core PCE Price Index Y/Y Oct | 4.80% | 5.10% | | 13:30 | USD | Initial Jobless Claims (Nov 25) | 245K | 240K | | 14:30 | CAD | Manufacturing PMI Nov | 50 | 48.8 | | 14:45 | USD | Manufacturing PMI Nov F | 47.6 | 47.6 | | 15:00 | USD | ISM Manufacturing PMI Nov | 50.5 | 50.2 | | 15:00 | USD | ISM Manufacturing Prices Paid Nov | 47.3 | 46.6 | | 15:00 | USD | ISM Manufacturing Employment Index Nov | 50 | | 15:00 | USD | Construction Spending M/M Oct | -0.10% | 0.20% | | 15:30 | USD | Natural Gas Storage | -82B | -80B |
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