Dollar Lacks Follow Through Buying, Yen Recovers on Jawboning
| Action Insight Daily Report 9-14-22 |
Dollar Lacks Follow Through Buying, Yen Recovers on Jawboning |
Dollar surged overnight, partly as traders added bet of another aggressive rate hike by Fed next week, and partly on deep risk aversion. Though, there is no follow through buying in Asia, as the greenback is now consolidating gains. On the other hand, Yen appears to be talked up by Japanese officials, and reports that BoJ is checking rates for intervention. Commodity currencies are currently the worst performers while European majors are mixed. Technically, Dollar has yet to prove it's ready to resume recent up trend. Key levels to watch include 0.9863 support in EUR/USD, 1.1404 support in GBP/USD, 0.6698 support in AUD/USD, 144.98 resistance in USD/JPY and 1.3207 resistance in USD/CAD. These levels have to be taken out with some conviction to confirm underlying strength in Dollar. In Asia, at the time of writing, Nikkei is down -2.69%. Hong Kong HSI is down -2.45%. China Shanghai SSE is down -1.03%. Singapore Strait Times is down -1.17%. Japan 10-year JGB yield is up 0.0079 at 0.253. Overnight, DOW dropped -3.94%. S&P 500 dropped -4.32%. NASDAQ dropped -5.16%. 10-year yield rose 0.0060 to 3.422. |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.3027; (P) 1.3101; (R1) 1.3249; More... USD/CAD rebounded strongly after dipping to 1.2952, but stays below 1.3207. Intraday bias remains neutral first. On the upside, decisive break of 1.3222 will resume larger up trend from 1.2005. Next target is 100% projection of 1.2005 to 1.2947 from 1.2401 at 1.3343. On the downside, however, break of 1.2952 will extend the corrective pattern from 1.3222 with another falling leg, back towards 1.2726 support instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | Current Account (NZD) Q2 | -5.22B | -4.70B | -6.14B | -6.50B | | 23:50 | JPY | Machinery Orders M/M Jul | 5.30% | -0.60% | 0.90% | | 04:30 | JPY | Industrial Production M/M Jul F | 0.80% | 1.00% | 1.00% | | 06:00 | GBP | CPI M/M Aug | 0.60% | 0.60% | | 06:00 | GBP | CPI Y/Y Aug | 10.20% | 10.10% | | 06:00 | GBP | Core CPI Y/Y Aug | 6.30% | 6.20% | | 06:00 | GBP | RPI M/M Aug | 1.20% | 0.90% | | 06:00 | GBP | RPI Y/Y Aug | 12.40% | 12.30% | | 06:00 | GBP | PPI Input M/M Aug | 1.20% | 0.10% | | 06:00 | GBP | PPI Input Y/Y Aug | 21.00% | 22.60% | | 06:00 | GBP | PPI Output M/M Aug | 1.60% | 1.60% | | 06:00 | GBP | PPI Output Y/Y Aug | 17.80% | 17.10% | | 06:00 | GBP | PPI Core Output M/M Aug | 1.50% | 1.00% | | 06:00 | GBP | PPI Core Output Y/Y Aug | 13.90% | 14.60% | | 09:00 | EUR | Eurozone Industrial Production M/M Jul | -0.80% | 0.70% | | 12:30 | USD | PPI M/M Aug | -0.10% | -0.50% | | 12:30 | USD | PPI Y/Y Aug | 8.90% | 9.80% | | 12:30 | USD | PPI Core M/M Aug | 0.30% | 0.20% | | 12:30 | USD | PPI Core Y/Y Aug | 7.40% | 7.60% | | 12:30 | CAD | Manufacturing Sales M/M Jul | -1.00% | -0.80% | | 14:30 | USD | Crude Oil Inventories | 1.9M | 8.8M |
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