Market Awaits Clear Direction Amid Market Lull
| Action Insight Daily Report 8-7-23 |
Market Awaits Clear Direction Amid Market Lull |
As we are now in the traditional summer quiet period, market activities appear largely subdued, a pattern expected to persist into first half of the week. US Dollar is attempting to gain momentum to revive its recent rally, but it's still kept way off last week's peak against other major currencies. Definitive direction for the greenback might only materialize after Thursday's release of US CPI data, unless a notable surge in risk market volatility precedes this. GBP/USD is in the spotlight this week, considering the anticipation surrounding US inflation and UK GDP data releases. From a technical viewpoint, the pair is currently seeking support from the 55 D EMA. A robust rebound from the current level would indicate that the pullback from 1.3141 is merely a correction to the rise from 1.1801. However, sustained trading period below 55 D EMA could signal that the pair is correcting the overall uptrend from 1.0351, thereby increasing the risk of a sharp fall back into the 1.1801/2445 support zone. In Asia, Nikkei closed up 0.19%. Hong Kong HSI is down -0.14%. China Shanghai SSE is down -0.84%. Singapore Strait Times is up 0.50%. Japan 10-year JGB yield is down -0.0124 at 0.634. |
AUD/USD Daily Report Daily Pivots: (S1) 0.6536; (P) 0.6573; (R1) 0.6605; More... Intraday bias in AUD/USD remains neutral for consolidation above 0.6513. Current development argues that larger fall from 0.7156 is still in progress. Below 0.6513 will bring retest of 0.6457 support first. Firm break there will confirm this case and target 100% projection of 0.7156 to 0.6457 from 0.6894 at 0.6195. Nevertheless, on the upside, above 0.6628 minor resistance will mix up the outlook and turn bias back to the upside for stronger rebound. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 05:00 | JPY | Leading Economic Index Jun P | 108.9 | 108.9 | 109.2 | | 06:00 | EUR | Germany Industrial Production M/M Jun | -1.50% | -0.40% | -0.20% | -0.10% | | 07:00 | CHF | Foreign Currency Reserves (CHF) Jul | 725B | | 08:30 | EUR | Eurozone Sentix Investor Confidence Aug | -25 | -22.5 |
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