Aussie Down as China Unrest Triggers Risk Aversion
| Action Insight Daily Report 11-28-22 |
Aussie Down as China Unrest Triggers Risk Aversion |
Yen and Dollar rise broadly in Asian session today while Australian Dollar leads commodity currencies lower. Markets are trading with risk-off sentiment, with deeper selloff in China and Hong Kong markets. Large scale protests were carried out in multiple cities in China over the weekend, and the theme has escalated from anti-lockdown to anti-President Xi Jinping and the Chinese Communist Party. The development in China will be a key factor for sentiment over the next few days, along with US job data and Eurozone inflation later in the week. Technically, the break of 92.58 minor support in AUD/JPY suggests that recovery from 90.81 has completed after failing to sustain above 55 day EMA. Deeper decline is now in favor back to retest 90.81 first. Firm break there will extend the decline from 99.32, as a correction to larger up trend from 2020 low at 59.85. Next target is 100% projection of 99.32 to 90.81 from 95.73 at 87.22. In Asia, Nikkei dropped -0.42%. Hong Kong HSI is down -2.15%. China Shanghai SSE is down -1.39%. Singapore Strait Times is down -0.52%. Japan 10-year JGB yield dropped -0.0053 to 0.255. |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.3332; (P) 1.3366; (R1) 1.3414; More.... Intraday bias in USD/CAD stays neutral for the moment. On the upside, firm break of 1.3494 will indicate that correction from 1.3976 has completed at 1.3224, ahead of 1.3207 cluster support (61.8% retracement of 1.2726 to 1.3976 at 1.3204). Intraday bias will be turned back to the upside for 1.3807/3976 resistance zone. However, on the downside, sustained break of 1.3204/7 will carry larger bearish implication and target 1.2952 support next. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 00:30 | AUD | Retail Sales M/M Oct | -0.20% | 0.50% | 0.60% | | 09:00 | EUR | Eurozone M3 Money Supply Y/Y Oct | 6.50% | 6.30% | | 13:30 | CAD | Current Account (CAD) Q3 | -4.0B | 2.7B |
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