Poor China Data Knocks Down Asian Markets, Aussie and Kiwi Tumble
| Action Insight Daily Report 5-31-23 |
Poor China Data Knocks Down Asian Markets, Aussie and Kiwi Tumble |
Asian stocks took a beating today as disappointing economic data from China put a damper on the region's markets. The bearish mood led to widespread selling of commodity currencies. Despite higher-than-expected CPI figures, Australian Dollar found little support, while an uptick in New Zealand business confidence did little to boost Kiwi. As investors sought safe haven assets, Japanese Yen led the pack in a strong rebound, while Dollar also saw broad gains riding on the current risk-off sentiment. European majors displayed mixed performance with Sterling outperforming, extending its weekly rally against Euro and Swiss Franc. From a technical perspective, NZD/JPY's drop from 87.28 continued today, with sign of downside re-acceleration. This decline is viewed as a falling leg within the medium-term range pattern. Deeper fall is expected as long as 85.32 minor resistance level holds, aiming towards 81.53 support level and possibly further, to extend range trading. In Asia, Nikkei closed down -1.41%. Hong Kong HSI is down -2.76%. China Shanghai SSE is down -0.86%. Singapore Strait Times is down -0.81%. Japan 10-year JGB yield is down -0.0031 at 0.433. Overnight, DOW dropped -0.15%. S&P 500 rose 0.00%. NASDAQ rose 0.32%. 10-year yield dropped -0.110 to 3.700. |
AUD/USD Daily Report Daily Pivots: (S1) 0.6494; (P) 0.6526; (R1) 0.6550; More... Intraday bias in AUD/USD is back on the downside with breach of 0.6489 temporary low. Current down trend from 0.7156 should target 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, however, break of 0.6558 resistance will now indicate short term bottoming, and turn bias back to the upside for stronger rebound. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Industrial Production M/M Apr P | -0.40% | 1.40% | 1.10% | | 23:50 | JPY | Retail Trade Y/Y Apr | 5.00% | 7.10% | 7.20% | 6.90% | | 01:00 | NZD | ANZ Business Confidence May | -31.1 | -43.8 | | 01:30 | AUD | Monthly CPI Y/Y Apr | 6.80% | 6.40% | 6.30% | | 01:30 | AUD | Private Sector Credit M/M Apr | 0.60% | 0.30% | 0.30% | 0.20% | | 01:30 | AUD | Construction Work Done Q1 | 1.80% | 0.60% | -0.40% | 1.00% | | 01:30 | CNY | NBS Manufacturing PMI May | 48.8 | 49.4 | 49.2 | | 01:30 | CNY | Non-Manufacturing PMI May | 54.5 | 54.9 | 56.4 | | 05:00 | JPY | Housing Starts Y/Y Apr | -11.90% | -0.90% | -3.20% | | 05:00 | JPY | Consumer Confidence Index May | 36 | 36.1 | 35.4 | | 06:00 | EUR | Germany Import Price Index M/M Apr | -1.70% | -0.60% | -1.10% | | 06:30 | CHF | Real Retail Sales Y/Y Apr | -1.40% | -1.90% | | 06:45 | EUR | France Consumer Spending M/M Apr | 0.30% | -1.30% | | 06:45 | EUR | France GDP Q/Q Q1 | 0.20% | 0.20% | | 07:55 | EUR | Germany Unemployment Change Apr | 15K | 24K | | 07:55 | EUR | Germany Unemployment Rate Apr | 5.60% | 5.60% | | 08:00 | CHF | Credit Suisse Economic Expectations May | -33.3 | | 12:00 | EUR | Germany CPI M/M May P | 0.30% | 0.40% | | 12:00 | EUR | Germany CPI Y/Y May P | 6.50% | 7.20% | | 12:30 | CAD | GDP M/M Mar | -0.10% | 0.10% | | 13:45 | USD | Chicago PMI May | 47.1 | 48.6 | | 18:00 | USD | Fed's Beige Book |
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