GBP Bounces on CPI, NZD Down after RBNZ
| Action Insight Daily Report 5-24-23 |
GBP Bounces on CPI, NZD Down after RBNZ |
New Zealand Dollar falls broadly today as the markets considered the RBNZ rate hike as a dovish one, probably with interest rate already peaked. The development also takes Aussie lower too. Meanwhile, Sterling is attempting a bounce after strong core CPI reading, as well as services prices. But buyers of the Pound appear to be hesitating for now. Euro is also slightly firmer but there is no apparent momentum except versus commodity currencies. Dollar and Yen are mixed, awaiting further guidance from overall risk sentiment. Technically, one focus for the rest of the day would be on whether Sterling could extend its rebound attempt. EUR/GBP has already breached 0.8660 temporary low too, and it's on track to resume the decline from 0.8977. Levels to watch include 1.2483 minor resistance in GBP/USD, and 172.60 temporary top in GBP/JPY. Break of these levels would mark a stronger come back in the Pound. In Asia, Nikkei closed down -0.89%. Hong Kong HSI is down -1.17%. China Shanghai SSE is down -0.89%. Singapore Strait Times is down -0.30%. Japan 10-year JGB yield is up 0.0089 at 0.413. Overnight, DOW dropped -0.69%. S&P 500 dropped -1.12%. NASDAQ drooped -1.26%. |
GBP/USD Daily Outlook Daily Pivots: (S1) 1.2376; (P) 1.2412; (R1) 1.2450; More... Intraday bias in GBP/USD is turned neutral with current recovery. Another fall is expected as long as 1.2483 resistance holds. Break of 1.2371, and sustained trading below 55 D EMA (now at 1.2397) will confirm that it's in correction to whole up trend from 1.0351. Deeper fall should then be seen to 1.1801 cluster support (38.2% retracement of 1.0351 to 1.2678 at 1.1789). On the upside, however, break of 1.2483 resistance will bring stronger rebound back to retest 1.2678 high instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | Retail Sales Q/Q Q1 | -1.40% | 0.20% | -0.60% | -1.00% | | 22:45 | NZD | Retail Sales ex Autos Q/Q Q1 | -1.10% | -1.00% | -1.30% | -1.60% | | 00:30 | AUD | Westpac Leading Index M/M Apr | 0.00% | 0.00% | | 02:00 | NZD | RBNZ Rate Decision | 5.50% | 5.50% | 5.25% | | 03:00 | NZD | RBNZ Press Conference | | 06:00 | GBP | CPI M/M Apr | 1.20% | 0.80% | 0.80% | | 06:00 | GBP | CPI Y/Y Apr | 8.70% | 8.20% | 10.10% | | 06:00 | GBP | Core CPI Y/Y Apr | 6.80% | 6.20% | 6.20% | | 06:00 | GBP | RPI M/M Apr | 1.50% | 1.70% | 0.70% | | 06:00 | GBP | RPI Y/Y Apr | 11.40% | 11.20% | 13.50% | | 06:00 | GBP | PPI Input M/M Apr | -0.30% | -0.50% | 0.20% | | 06:00 | GBP | PPI Input Y/Y Apr | 3.90% | 3.80% | 7.60% | 7.30% | | 06:00 | GBP | PPI Output M/M Apr | 0.00% | -0.10% | 0.10% | 0.00% | | 06:00 | GBP | PPI Output Y/Y Apr | 5.40% | 7.40% | 8.70% | 8.50% | | 06:00 | GBP | PPI Core Output M/M Apr | 0.00% | 0.10% | 0.30% | | 06:00 | GBP | PPI Core Output Y/Y Apr | 6.00% | 7.30% | 8.50% | 8.30% | | 08:00 | EUR | Germany IFO Business Climate May | 93.4 | 93.6 | | 08:00 | EUR | Germany IFO Current Assessment May | 95.2 | 95 | | 08:00 | EUR | Germany IFO Expectations May | 91.7 | 92.2 | | 14:30 | USD | Crude Oil Inventories | 1.5M | 5.0M | | 18:00 | USD | FOMC Minutes |
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