Euro Soft on Poor Investor Confidence, Aussie Range Bound ahead of RBA
| Action Insight Mid-Day Report 6-5-23 |
Euro Soft on Poor Investor Confidence, Aussie Range Bound ahead of RBA |
Euro is experiencing some selling pressure today, brought on by discouraging investor confidence data, with other European currencies also showing signs of distress. Meanwhile, US Dollar is making strides, superseding commodity currencies as it rides the wave of last week's late rally. Australian Dollar is trading within a narrow range against Canadian Dollar and New Zealand Dollar, as markets anticipate the outcome of tomorrow's RBA rate decision. On the other hand, the Japanese Yen presents a mixed picture as it continues in its near-term consolidation phase. Technically, the strong rally in AUD/NZD in the last two weeks argues that corrective pattern from 1.1085 has completed with three waves down to 1.0556. Immediate focus is now on 1.0928 resistance in the coming session. Decisive break there will confirm this case and would probably prompt further rise through 1.1085, to resume the whole rebound from 1.0469. Nevertheless, break of 1.0769 minor support will revive some near term bearishness for deeper fall back to 1.0556. RBA previews: RBA Board to Hold the Line at the June Meeting Will RBA Surprise Traders and Raise Rates Again? In Europe, at the time of writing, FTSE is up 0.49%. DAX is up 0.16%. CAC is down -0.16%. Germany 10-year yield is up 0.0067 at 2.383. Earlier in Asia, Nikkei rose 2.20%. Hong Kong HSI rose 0.84%. China Shanghai SSE rose 0.07%. Singapore Strait Times rose 0.72%. Japan 10-year JGB yield closed flat at 0.434. |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0682; (P) 1.0731; (R1) 1.0756; More... EUR/USD dips notably today but stays above 1.0634 support. Intraday bias remains neutral first. On the downside, break of 1.0634 will resume the corrective decline from 1.1094. Deeper fall should then be seen to 1.0515 cluster support, 38.2% retracement of 0.9534 to 1.1094 at 1.0498. On the upside, however, above 1.0778 will resume the rebound from 1.0634 to 55 D EMA (now at 1.0829). | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 01:00 | AUD | TD Securities Inflation M/M May | 0.90% | 0.20% | | 01:30 | AUD | Company Gross Operating Profits Q/Q Q1 | 0.50% | 2.10% | 10.60% | 12.70% | | 01:45 | CNY | Caixin Services PMI May | 57.1 | 55.2 | 56.4 | | 06:00 | EUR | Germany Trade Balance (EUR) Apr | 18.4B | 16.1B | 16.7B | 14.9B | | 06:30 | CHF | CPI M/M May | 0.30% | 0.40% | 0.00% | | 06:30 | CHF | CPI Y/Y May | 2.20% | 2.10% | 2.60% | | 07:45 | EUR | Italy Services PMI May | 54 | 53.7 | 57.6 | | 07:50 | EUR | France Services PMI May F | 52.5 | 52.8 | 52.8 | | 07:55 | EUR | Germany Services PMI May F | 57.2 | 57.8 | 57.8 | | 08:00 | EUR | Eurozone Services PMI May F | 55.1 | 55.9 | 55.9 | | 08:30 | EUR | Eurozone Sentix Investor Confidence Jun | -17 | -9.2 | -13.1 | | 08:30 | GBP | Services PMI May F | 55.2 | 55.1 | 55.1 | | 09:00 | EUR | Eurozone PPI M/M Apr | -3.20% | -2.70% | -1.60% | | 09:00 | EUR | Eurozone PPI Y/Y Apr | 1.00% | 0.80% | 5.90% | | 13:45 | USD | Services PMI May F | 55.1 | 55.1 | | 14:00 | USD | ISM Services PMI May | 52.6 | 51.9 | | 14:00 | USD | Factory Orders M/M Apr | 0.80% | 0.90% |
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