China's Rate Cut Meets Indifferent Markets, Canada CPI Takes Center Stage
| Action Insight Daily Report 2-20-24 |
China's Rate Cut Meets Indifferent Markets, Canada CPI Takes Center Stage |
The financial markets are rather calm in Asian session today, while major currency pairs and crosses largely engage in a phase of consolidation. This tranquility comes in the wake of China's surprising decision to significantly lower its mortgage reference interest rate, a move designed to provide a much-needed boost to the struggling property sector and, by extension, the broader economy. Despite the potential implications of such a policy shift, reaction across the markets was relatively muted, with only the offshore Yuan registering slight gains. Australian Dollar, in particular, remained indifferent to the news surrounding China's development. Aussie is also similarly unresponsive to RBA's hawkish minutes. Commodity currencies and Yen are currently leaning towards the softer side. On the other hand, Dollar shows signs of strengthening, trailed by Swiss Franc and Sterling, with Euro displaying mixed performance... |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.3473; (P) 1.3485; (R1) 1.3503; More... USD/CAD is still bounded in range below 1.3585 and intraday bias remains neutral. More consolidations could be seen, but further rally is expected as long as 1.3357 support holds. On the upside, firm break of 1.3585 will resume the rebound from 1.3176 for 1.3897 resistance. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 00:30 | AUD | RBA Meeting Minutes | | 01:15 | CNY | PBoC 1Y Loan Prime Rate | 3.45% | 3.45% | 3.45% | | 01:15 | CNY | PBoC 5Y Loan Prime Rate | 3.95% | 4.10% | 4.20% | | 07:00 | CHF | Trade Balance (CHF) Jan | 2.35B | 1.25B | | 09:00 | EUR | Eurozone Current Account (EUR) Dec | 20.3B | 24.6B | | 13:30 | CAD | CPI M/M Jan | 0.40% | -0.30% | | 13:30 | CAD | CPI Y/Y Jan | 3.30% | 3.40% | | 13:30 | CAD | CPI Median Y/Y Jan | 3.60% | 3.60% | | 13:30 | CAD | CPI Trimmed Y/Y Jan | 3.60% | 3.70% | | 13:30 | CAD | CPI Common Y/Y Jan | 3.80% | 3.90% |
|
|
|
