Action Insight Mid-Day Report 9-1-23

NFP Boosts Investor Sentiment, Pressures Dollar and Yields

Investors react favorably to the much-anticipated US Non-Farm Payroll data, sending stock futures soaring while Treasury yields and Dollar weaken. The latest numbers point to a more relaxed labor market, yet with decent job growth, which is what Fed would love to see. Additionally, the slowdown in wage growth suggests some relief for domestic inflation pressures.

In the currency markets, Japanese Yen emerged as the primary winner, appreciating broadly in the wake of the NFP release. New Zealand and Australian Dollars followed suit, buoyed by risk-on sentiment. On the other end of the spectrum, is flaring even worse against the greenback after GDP data. Meanwhile, European majors showed limited enthusiasm, gaining only modestly following NFP.

Technically, Gold is making bullish progress by resuming the rally from 1884.84. Break of the trend line resistance affirms the case that corrective pattern from 2062.95 has completed at 1884.83. Further rally would be seen to 1987.22 resistance for confirmation. Nevertheless, break of 1938.03 minor support will mix up the near term outlook.

In Europe, at the time of writing, FTSE is up 0.43%. DAX is down -0.14%. CAC is up 0.20%. Germany 10-year yield is up 0.0142 at 2.479. Earlier in Asia, Nikkei rose 0.28%. China Shanghai SSE rose 0.43%. Japan 10-year JGB yield dropped -0.0157 to 0.632.

Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 145.17; (P) 145.72; (R1) 146.10; More...

USD/JPY falls notably in early US session but it's still trying to defend 144.52 support. Intraday bias stays neutral first. Strong rebound from current level, follow by break of 147.36, will resume the rise from 127.20 to retest 151.93 high. On the downside, however, firm break of 144.52 should confirm short term topping, and turn bias back to the downside for 55 D EMA (now at 143.04) and possibly below.

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

Market Wiped out Tuesday's Gains; Down-Trend Asserted in BTC

Gold Price and Crude Oil Price Turn Green

NZDUSD Trapped Below Key Average

USDCAD Pulls Back from 3-month Peak

GBPJPY Should Extend Lower in Zigzag Correction

RBA Board on Hold Next Week – Next Move Will Be Down