Asia Extends Rebound, But Aussie Not Following... Yet
| Action Insight Daily Report 11-7-22 |
Asia Extends Rebound, But Aussie Not Following... Yet |
The forex markets are rather steady in Asia today. While stocks in China and Hong Kong extending last week's strong rebound, Aussie and Kiwi are not following for now. Some traders are on guard to rumors of reopening in China, in particular with a district in Guangzhou still extending tough lockdown. The economic calendar is relative light this week. Main focus will be on consumer inflation data in the US. Technically, it's possible that AUD/JPY's consolidation from 95.73 has completed with three waves to 92.94. That is, rebound from 90.81 might be ready to resume. Break of 95.73 resistance will confirm this case and target 99.32 high. For now, a break of 99.32 is not envisaged given the threat of intervention in USD/JPY. But that could depend on the momentum in AUD/USD upon breaking through 0.6521 resistance to complete a head and should bottom pattern. In Asia, at the time of writing, Nikkei is up 1.30%. Hong Kong HSI is up 3.42%. China Shanghai SSE is up 0.46%. Singapore Strait Times is up 0.21%. Japan 10-year JGB yield is down -0.0074 at 0.250. |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.3383; (P) 1.3567; (R1) 1.3808; More.... Intraday bias in USD/CAD stays on the downside at this point. A head and should top pattern (1.3832; h: 1.3976; rs: 1.3807) should be formed already. Sustained trading below 1.3494 will confirm, and bring deeper fall to .3207 cluster support (61.8% retracement of 1.2726 to 1.3976 at 1.3204. Strong support should be seen there to bring rebound. But for now, risk will stay on the downside as long as 1.3807 resistance holds, in case of recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 02:00 | CNY | Trade Balance (USD) Oct | 85.2B | 96.0B | 84.7B | | 02:00 | CNY | Trade Balance (CNY) Oct | 587B | 702B | 574B | | 06:00 | JPY | Machine Tool Orders Y/Y Oct | 4.30% | | 07:00 | EUR | Germany Industrial Production M/M Sep | -0.20% | -0.80% | | 08:00 | CHF | Foreign Currency Reserves (CHF) Oct | 807B | | 09:30 | EUR | Eurozone Sentix Investor Confidence Nov | -35 | -38.3 |
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