AUD/JPY Extends Rally, Dollar Turns Softer Again
| Action Insight Daily Report 8-25-22 |
AUD/JPY Extends Rally, Dollar Turns Softer Again |
Dollar turns softer in Asian session today, but stays in familiar range. Traders would likely remain cautious until Fed Chair Jerome Powell's speech at the Jackson Hole Symposium tomorrow. For now, Aussie and Kiwi are the stronger ones for the day. European majors and Canadian Dollar are soft too, next to Dollar. Technically, AUD/JPY resumes the rise from 90.51 by breaking through 95.13 temporary top. The development affirms the case that whole corrective pattern from 96.86 has completed with three waves down to 90.51. Further rally should be seen through 95.68 resistance to retest 96.86 high. This will remain the favored case as long as 94.18 support holds. The question is whether this is an indication of return of risk rally. In Asia, Nikkei rose 0.58%. Hong Kong HSI is up 1.54%. China Shanghai SSE is up 0.02%. Singapore Strait Times is up 0.37%. Japan 10-year JGB yield is up 0.0043 at 0.229. Overnight, DOW rose 0.18%. S&P 500 rose 0.29%. NASDAQ rose 0.41%. 10-year yield rose 0.052 to 3.106. |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.2943; (P) 1.2981; (R1) 1.3009; More... Intraday bias in USD/CAD stays neutral for the moment and some more consolidations could be seen below 1.3062. But outlook is unchanged that corrective decline from 1.3222 should have completed with three waves down to 1.2726. Above 1.3062 will resume the rebound to retest 1.3222 high. However, break of 1.2826 support will dampen this view and turn bias back to the downside for 1.2726 and possibly below. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | Retail Sales Q/Q Q2 | -2.30% | 1.70% | -0.50% | | 22:45 | NZD | Retail Sales ex Autos Q/Q Q2 | -1.60% | 1.80% | 0.00% | -0.30% | | 23:50 | JPY | Corporate Service Price Index Y/Y Jul | 2.10% | 2.20% | 2.00% | | 06:00 | EUR | Germany GDP Q/Q Q2 F | 0.00% | 0.00% | | 08:00 | EUR | Germany IFO Business Climate Aug | 86.7 | 88.6 | | 08:00 | EUR | Germany IFO Current Assessment Aug | 96 | 97.7 | | 08:00 | EUR | Germany IFO Expectations Aug | 78.6 | 80.3 | | 11:30 | EUR | ECB Meeting Accounts | | 12:30 | USD | Initial Jobless Claims (Aug 19) | 256K | 250K | | 12:30 | USD | GDP Annualized Q2 P | -0.70% | -0.90% | | 12:30 | USD | GDP Price Index Q2 P | 8.70% | 8.70% | | 14:30 | USD | Natural Gas Storage | 54B | 18B |
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