Australian Dollar Rebounds Notably on Employment Data, Resurgence in Copper and Yuan
| Action Insight Daily Report 7-20-23 |
Australian Dollar Rebounds Notably on Employment Data, Resurgence in Copper and Yuan |
Australian Dollar is making a notable rebound today, largely supported by strong employment data, rebound in Copper price, and a resurgence in Chinese Yuan. In tandem, New Zealand Dollar is closely trailing the second strongest performer. However, British Pound languishes as the worst performer, still feeling the drag from yesterday's lower-than-expected UK CPI Data. Dollar and Japanese Yen are also experiencing weakness, seemingly reacting to the extended rally in US stock markets overnight. Euro and Canadian Dollar display mixed performance at the moment. In an interesting development, People's Bank of China announced an increase in a parameter on cross-border corporate financing under its macro-prudential assessments. This strategic move is aimed at enhancing cross-border financing and continuing to expand the sources of cross-border funds for businesses and financial institutions. Analysts interpret this step as a clear intention to maintain RMB above 7.2 handle. USD/CNH pull backed sharply from 7.2360 today. But overall technically outlook is unchanged. Price actions from 7.2853 are seen as a corrective pattern for now. Strong support from 55 D EMA (now at 7.132) maintains near term bullishness. As long as 7.1036 cluster support holds (38.2% retracement of 6.810 to 7.2853 at 7.1037), another rise is still in favor through 7.2853 to 7.3745. If realized, resumed selloff in CNH would exert some pressure on Aussie again. In Asia, Nikkei closed down -1.23%. Hong Kong HSI is down-0.06%. China Shanghai SSE is down -0.84%. Singapore Strait Times is up 0.02%. Japan 10-year JGB yield is down -0.0009 at 0.466. Overnight, DOW rose 0.31%. S&P 500 rose 0.24%. NASDAQ rose 0.03%. 10-year yield dropped -0.0047 to 3.742. |
AUD/USD Daily Report Daily Pivots: (S1) 0.6741; (P) 0.6780; (R1) 0.6811; More... AUD/USD rebounds notably after drawing support from 55 4H EMA, but stays below 0.6894/8 resistance zone. Intraday bias remains neutral for the moment. On the upside, decisive break of 0.6898 resistance will firstly confirm resumption of rise from 0.6457. Secondly, that should also confirm completion of the fall from 0.7156 at 0.6457. Next target will be 100% projection of 0.6457 to 0.6898 from 0.6594 at 0.7035, and then 0.7156 resistance. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 23:50 | JPY | Trade Balance (JPY) Jun | -0.55T | -0.66T | -0.78T | -0.77T | | 01:30 | AUD | NAB Business Confidence Q2 | -3 | -4 | | 01:30 | AUD | Employment Change Jun | 32.6K | 15.0K | 75.9K | 76.5K | | 01:30 | AUD | Unemployment Rate Jun | 3.50% | 3.60% | 3.60% | 3.50% | | 06:00 | CHF | Trade Balance (CHF) Jun | 4.82B | 4.23B | 5.48B | | 06:00 | EUR | Germany PPI M/M Jun | -0.30% | -0.40% | -1.40% | | 06:00 | EUR | Germany PPI Y/Y Jun | 0.10% | 0.00% | 1.00% | | 08:00 | EUR | Eurozone Current Account (EUR) May | 2.5B | 3.6B | | 12:30 | USD | Initial Jobless Claims (Jul 14) | 245K | 237K | | 12:30 | USD | Philadelphia Fed Manufacturing Jul | -15.5 | -13.7 | | 14:00 | USD | Existing Home Sales Jun | 4.27M | 4.30M | | 14:00 | EUR | Eurozone Consumer Confidence Jul P | -16 | -16 | | 14:30 | USD | Natural Gas Storage | 45B | 49B |
|
|
|
