Yen Down on Japan Wage Data; China Trade Figures Sends Aussie Lower
| Action Insight Mid-Day Report 8-7-23 |
Yen Down on Japan Wage Data; China Trade Figures Sends Aussie Lower |
Today's Asian session witnessed a revitalized forex market, triggered largely by pivotal economic data releases. Japan's weaker-than-anticipated wage growth data placed Yen under notable pressure, reinforcing BoJ's commitment to persist with its ultra-loose monetary policy. Simultaneously, unexpectedly poor trade figures from China exerted downward force on Hong Kong stocks, as well as on Australian and New Zealand dollars. Conversely, Dollar is showing signs of a near-term rally resurgence. An imminent breakout from its recent range seems likely, especially when pitted against Yen and commodity-linked currencies. For the time being, European majors are holding steady, oscillating in their respective ranges both against Dollar and amongst themselves. Technically, CHF/JPY looks ready to resume its record run with today's strong rally. For now, outlook will stay bullish as long as 161.93 support holds, even in case of retreat. Next target is 61.8% of 149.77 to 163.95 from 158.80 at 167.56. A point of attention will be on whether 4H MACD could break above its falling trend line to signal a new phase of upside acceleration. In Asia, at the time of writing, Nikkei is up 0.50%. Hong Kong HSI is down -1.46%. China Shanghai SSE is down-0.16%. Singapore Strait Times is up 0.12%. Japan 10-year JGB yield is down -0.016 to 0.612. Overnight, DOW rose 1.16%. S&P 500 ro se0.90%. NASDAQ rose 0.6%. 10-year yield rose 0.018 to 4.078. |
AUD/USD Daily Report Daily Pivots: (S1) 0.6555; (P) 0.6574; (R1) 0.6593; More... AUD/USD dips notably today but stays above 0.6513 temporary low. Intraday bias stays neutral first, and outlook remains bearish. 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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| 23:01 | GBP | BRC Like-For-Like Retail Sales Y/Y Jul | 1.80% | 3.00% | 4.20% | | 23:30 | JPY | Labor Cash Earnings Y/Y Jun | 2.30% | 3.00% | 2.50% | 2.90% | | 23:30 | JPY | Overall Household Spending Y/Y Jun | -4.20% | -3.50% | -4.00% | | 23:50 | JPY | Bank Lending Y/Y Jul | 2.90% | 3.10% | 3.20% | | 23:50 | JPY | Current Account (JPY) Jun | 2.35T | 2.24T | 1.70T | | 00:30 | AUD | Westpac Consumer Confidence Aug | -0.40% | 2.70% | | 01:30 | AUD | NAB Business Conditions Jul | 10 | 9 | 11 | | 01:30 | AUD | NAB Business Confidence Jul | 2 | 0 | -1 | | 03:00 | CNY | Trade Balance (USD) Jul | 80.6B | 67.8B | 70.6B | | 03:00 | CNY | Trade Balance (CNY) Jul | 576B | 470B | 491B | | 05:00 | JPY | Eco Watchers Survey: Outlook Jul | 54.4 | 54.5 | 53.6 | | 06:00 | EUR | Germany CPI M/M Jul F | 0.30% | 0.30% | | 06:00 | EUR | Germany CPI Y/Y Jul F | 6.20% | 6.20% | | 06:45 | EUR | France Trade Balance (EUR) Jun | -8.0B | -8.4B | | 10:00 | USD | NFIB Business Optimism Index Jul | 90.6 | 91 | | 12:30 | USD | Trade Balance (USD) Jun | -65.2B | -69.0B | | 12:30 | CAD | Trade Balance (CAD) Jun | -1.7B | -3.4B | | 14:00 | USD | Wholesale Inventories Jun F | -0.30% | -0.30% |
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