Yen Weakens Amidst Subdued Trading, Aussie Up ahead of RBA
| Action Insight Daily Report 5-6-24 |
Yen Weakens Amidst Subdued Trading, Aussie Up ahead of RBA |
Yen weakens broadly in Asian session, albeit in a subdued market environment due to Japan's holiday. Despite this, the selloff in the Japanese currency remains relatively contained, with traders vigilant of market intervention by Japan. While 160 level against Dollar is currently considered a floor for Yen, uncertainty persists regarding Japan's desired exchange rate, which they officially said it's not targeted. Nevertheless, absent further actions by the authority, the range for Yen consolidation appears to be nearly established. Elsewhere in the markets, New Zealand Dollar trails as the second weakest performer, despite an OECD report suggesting limited room for RBNZ to cut interest rates this year. Meanwhile, Swiss Franc also softens as the third weakest, retracing some of the gains triggered by last week's Swiss CPI data. Market focus shifts to the Australian Dollar, currently the top performer, as investors eagerly anticipate tomorrow's RBA rate decision. Following is Canadian Dollar while Euro follows suit as the third best performer. Dollar and Sterling maintain middling posit, with the Pound awaiting BoE rate decision later in the week... |
GBP/JPY Daily Outlook Daily Pivots: (S1) 191.26; (P) 192.03; (R1) 192.72; More.. Intraday bias in GBP/JPY is turned neutral first with current recovery. On the upside, break of 55 4H EMA will bring stronger rebound back toward 197.40 resistance. On the downside, below 191.34 will resume the correction from 200.53. Sustained trading below 55 D EMA (now at 191.42) will target 61.8% retracement of 178.32 to 200.53 at 186.80. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 01:00 | AUD | TD Securities Inflation M/M Apr | 0.10% | 0.10% | | 01:45 | CNY | Caixin Services PMI Apr | 52.5 | 52.5 | 52.7 | | 07:45 | EUR | Italy Services PMI Apr | 54.7 | 54.6 | | 07:50 | EUR | France Services PMI Apr | 50.5 | 50.5 | | 07:55 | EUR | Germany Services PMI Apr F | 53.3 | 53.3 | | 08:00 | EUR | Eurozone Services PMI Apr F | 52.9 | 52.9 | | 08:30 | EUR | Eurozone Sentix Investor Confidence May | -5.9 | | 09:00 | EUR | Eurozone PPI M/M Mar | -0.70% | -1.00% | | 09:00 | EUR | Eurozone PPI Y/Y Mar | -8.30% |
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