Aussie Leads Decline in Commodity Currencies; Risk Aversion Dominates Following China's Rate Cut
| Action Insight Daily Report 7-22-24 |
Aussie Leads Decline in Commodity Currencies; Risk Aversion Dominates Following China's Rate Cut |
Australian Dollar leads other commodity currencies lower in Asian session today, reflecting a broader risk-off sentiment in the markets. The market's risk-off sentiment is further emphasized by the strength of Yen and Swiss Franc, currencies typically favored during periods of uncertainty. Nikkei has slipped below the 40k mark, while China's Shanghai SSE is down over -1%. This negative mood should be primarily driven by the unexpected rate cut by China's central bank, signaling deepening economic troubles in the country. Some analysts have speculated that market reactions could be influenced by US President Joe Biden's announcement to withdraw from the presidential race. However, Biden's exit was largely anticipated and should have already been digested by the markets. The more pressing question now is whether Vice President Kamala Harris will step in to compete against Donald Trump,or if another contender will emerge... |
EUR/AUD Daily Outlook Daily Pivots: (S1) 1.6250; (P) 1.6270; (R1) 1.6308; More... Intraday bias in EUR/AUD is back on the upside as rebound from 1.5996 resumed after brief retreat. Current development suggest that 1.0762 has completed with three waves down to 1.6000 fibonacci support. Further rise should be seen to 1.6418 resistance first. Firm break there will solidify this bullish case and target 1.6742 resistance next. On the downside, though, break of 1.6185 support will dampen this bullish view and bring retest of 1.5996 instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | Trade Balance (NZD) Jun | 699M | 294M | 204M | 54M | | 01:15 | CNY | 1-Y Loan Prime Rate | 3.35% | 3.45% | 3.45% | | 01:15 | CNY | 5-Y Loan Prime Rate | 3.85% | 3.95% | 3.95% |
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