Aussie Dips Following RBA, With Loonie and Kiwi Also Impacted by Risk Aversion
| Action Insight Daily Report 12-5-23 |
Aussie Dips Following RBA, With Loonie and Kiwi Also Impacted by Risk Aversion |
Today's Asian session saw broad decline in Australian Dollar, along with New Zealand and Canadian Dollars. This pattern suggests a shift towards risk aversion among investors, a sentiment echoed by the performance of major Asian stock indexes. Hong Kong stocks, in particular, continued their recent down trend, reaching new lows due to disappointing earnings results from some large Chinese companies. Japan's Nikkei index also hit a three-week low, largely impacted by falling chipmaker stocks. RBA's decision to maintain its interest rate unchanged was in line with market expectations. Despite this, the statement was interpreted as less hawkish than some market analysts anticipated. However, prior to the meeting, it was largely understood that RBA would await Q4 inflation data, scheduled for release in January, before contemplating its next move in February. Thus, RBA's stance of data-dependency and openness to future rate hikes was not an entirely new revelation. Nonetheless, the Australian Dollar is currently underperforming even compared to other commodity-linked currencies... |
AUD/USD Daily Report Daily Pivots: (S1) 0.6586; (P) 0.6639; (R1) 0.6672; More... AUD/USD dips notably today but stays above 0.6570 support so far. Intraday bias remains neutral first. On the upside, sustained break of channel resistance (now at 0.6651) will argue that whole decline from 0.7156 has completed with three waves down to 0.6269. Further rally should then be seen to 0.6894 resistance for confirmation. However, break of 0.6570 support will indicate rejection by the channel and turn bias back to the downside for 55 D EMA (now at 0.6482) instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | Tokyo CPI Y/Y Nov | 2.60% | 3.30% | 3.20% | | 23:30 | JPY | Tokyo CPI ex Fresh Food Y/Y Nov | 2.30% | 2.40% | 2.70% | | 23:30 | JPY | Tokyo CPI ex Food Energy Y/Y Nov | 3.60% | 3.80% | | 00:30 | AUD | Current Account (AUD) Q3 | -0.2B | 3.5B | 7.7B | 7.8B | | 01:45 | CNY | Caixin Services PMI Nov | 51.5 | 50.8 | 50.4 | | 03:30 | AUD | RBA Interest Rate Decision | 4.35% | 4.35% | 4.35% | | 07:45 | EUR | France Industrial Output M/M Oct | -0.20% | -0.50% | | 08:45 | EUR | Italy Services PMI Nov | 48.2 | 47.7 | | 08:50 | EUR | France Services PMI Nov F | 45.3 | 45.3 | | 08:55 | EUR | Germany Services PMI Nov F | 48.7 | 48.7 | | 09:00 | EUR | Eurozone Services PMI Nov F | 48.2 | 48.2 | | 09:30 | GBP | Services PMI Nov F | 50.5 | 50.5 | | 10:00 | EUR | Eurozone PPI M/M Oct | 0.20% | 0.50% | | 10:00 | EUR | Eurozone PPI Y/Y Oct | -9.40% | -12.40% | | 14:45 | USD | Services PMI Nov F | 50.8 | 50.8 | | 15:00 | USD | ISM Services PMI Nov | 52.6 | 51.8 |
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