Aussie Extends Rally, Europeans Weak, Dollar Consolidates
| Action Insight Mid-Day Report 8-25-22 |
Aussie Extends Rally, Europeans Weak, Dollar Consolidates |
Dollar is staying soft in consolidation today, as traders are clearly still cautiously waiting for rate clues from Fed Chair Jerome Powell's Jackson Hole speech tomorrow. Yen is also mixed despite surging benchmark treasury yields. Movements are mainly found in Aussie and Kiwi, on rallies, which are lifted by China's new stimulus plan. On the other hand, European majors the weakest ones for now. Technically, while Dollar's retreat could extend further, some levels need to be broken to indicate persistence in selling. Otherwise, Dollar rally could come back any time. The levels include 1.0121 resistance in EUR/USD, 1.2002 resistance in GBP/USD, 0.9500 support in USD/CHF, and 1.2826 support in USD/CAD. In Europe, at the time of writing, FTSE is up 0.13%. DAX is up 0.05%. CAC is down -0.21%. Germany 10-year yield is down -0.018 at 1.353. Earlier in Asia, Nikkei Rose 0.58%. Hong Kong HSI rose 3.63%. China Shanghai SSE rose 0.97%. Singapore Strait Times rose 0.44%. Japan 10-year JGB yield rose 0.0059 to 0.230. |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 136.46; (P) 136.86; (R1) 137.53; More... USD/JPY is staying in consolidation from 137.70 and intraday bias stays neutral. Overall, price actions from 139.37 are seen as a corrective pattern, with rise from 130.38 has the second leg. Above 137.70 will extend the rebound but upside should be limited by 139.37. On the downside, firm break of 135.57 will suggest that the third leg of the pattern has started, and turn intraday bias back to the downside for 131.72 support first. | |
| 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 | 0.10% | 0.00% | 0.00% | | 08:00 | EUR | Germany IFO Business Climate Aug | 88.5 | 86.7 | 88.6 | 88.7 | | 08:00 | EUR | Germany IFO Current Assessment Aug | 97.5 | 96 | 97.7 | | 08:00 | EUR | Germany IFO Expectations Aug | 80.3 | 78.6 | 80.3 | 80.4 | | 11:30 | EUR | ECB Meeting Accounts | | 12:30 | USD | Initial Jobless Claims (Aug 19) | 243K | 256K | 250K | 245K | | 12:30 | USD | GDP Annualized Q2 P | -0.60% | -0.70% | -0.90% | | 12:30 | USD | GDP Price Index Q2 P | 9.00% | 8.70% | 8.70% | | 14:30 | USD | Natural Gas Storage | 54B | 18B |
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