Dollar Soars after FOMC Minutes and Fed Comments
| Action Insight Daily Report 5-25-23 |
Dollar Soars after FOMC Minutes and Fed Comments |
Dollar surged overnight trade and maintained its momentum into today's Asian trading session. This robust performance followed the release of FOMC minutes, which depicted a high degree of uncertainty regarding the future trajectory of monetary policy. Despite this ambiguity, a pause in the tightening cycle by June does not necessarily signal its end, and any rate cuts appear to be a distant prospect. Trailing behind the greenback, Euro ranks as the second strongest currency for the week so far, followed closely by Swiss Franc. Conversely, New Zealand Dollar is the worst performer, followed by Australian Dollar and Japanese Yen. Canadian dollar and British Pound are mixed in the current trading environment. As a follow-up on NZD/USD, the selloff accelerated as expected after breaking 0.6181 support. Now that 0.6181 support is also broken, the whole decline from 0.6537 should be resuming. Near term outlook will stay bearish as long as 0.6181 support turned resistance holds. Next target is 100% projection of 0.6537 to 0.6083 from 0.6383 at 0.5929. It should be noted that AUD/USD also broke 0.6563 support to resume the whole fall from 0.7156. So, both would likely resume pressured against the greenback for the near term at least. In Asia, at the time of writing, Nikkei is up 0.22%. Hong Kong HSI is down -2.06%. China Shanghai SSE is down -0.37%. Singapore Strait Times is down -0.18%. Japan 10-year JGB yield is up 0.0198 at 0.428. Overnight, DOW dropped -0.77%. S&P 500 dropped -0.73%. NASDAQ dropped -0.61%. 10-year yield rose 0.021 to 3.719. |
AUD/USD Daily Report Daily Pivots: (S1) 0.6510; (P) 0.6564; (R1) 0.6597; More... AUD/USD's break of 0.6563 support confirms resumption of whole decline from 0.7156. Intraday bias stays on the downside for 61.8% projection of 0.7156 to 0.6563 from 0.6817 at 0.6451. Firm break there will target 100% projection at 0.6224. On the upside, above 0.6604 resistance will turn intraday bias neutral first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 06:00 | EUR | Germany Gfk Consumer Confidence Jun | -24.5 | -25.7 | | 06:00 | EUR | Germany GDP Q/Q Q1 F | 0.00% | 0.00% | | 12:30 | USD | Initial Jobless Claims (May 19) | 253K | 242K | | 12:30 | USD | GDP Price Index Q1 P | 4% | 4% | | 12:30 | USD | GDP Annualized Q1 P | 1.10% | 1.10% | | 14:00 | USD | Pending Home Sales M/M Apr | 1.20% | -5.20% | | 14:30 | USD | Natural Gas Storage | 100B | 99B |
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