Dollar Back in Control on Risk Aversion and Rising Yields
| Action Insight Daily Report 9-1-22 |
Dollar Back in Control on Risk Aversion and Rising Yields |
Dollar is back in control in Asian session, with some help from risk averse sentiment. Euro is staying firm against Sterling and Swiss Franc, and is picking up upside momentum against commodity currencies. In particular, Aussie is sold off on poor manufacturing data from both Australia and China. Yen is also weak along with renewed rally in benchmark treasury yields. Technically, US 10-year yield will be a focus today as could be trying to break away from 3.101 resistance decisively. In that case, a near term rally extension would be set up towards 3.483 high. Such development could push Yen pairs higher. In particular, USD/JPY could follow and break through 139.37 resistance in sustained way to resume larger up trend. In Asia, at the time of writing, FTSE is down -1.05%. DAX is down -0.97%. CAC is down -1.37%. Japan 10-year JGB yield is up 0.0057 at 0.236. Overnight, DOW dropped -0.88%. S&P 500 dropped -0.78%. NASDAQ dropped -0.56%. 10-year yield rose 0.023 to 3.133. |
USD/JPY Daily Outlook Daily Pivots: (S1) 138.48; (P) 138.75; (R1) 139.22; More... Intraday bias in USD/JPY is back on the upside as rise from 130.38 resumes and picks up some momentum. Focus is now on 139.37 resistance. Sustained break there will confirm up trend resumption. Next target is 100% projection of 126.35 to 139.37 from 130.38 at 143.40. However, break of 137.70 resistance turned support will suggest rejection from 139.37, and turn bias to the downside to extend the corrective pattern from there with another falling leg. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:30 | AUD | AiG Performance of Mfg Index Aug | 49.3 | 52.5 | | 23:50 | JPY | Capital Spending Q2 | 4.60% | 3.00% | 3.00% | | 00:30 | JPY | Manufacturing PMI Aug F | 51.5 | 51 | 51 | | 01:30 | AUD | Private Capital Expenditure Q2 | -0.30% | 1.10% | -0.30% | | 01:45 | CNY | Caixin Manufacturing PMI Aug | 49.5 | 50.2 | 50.4 | | 06:00 | EUR | Germany Retail Sales M/M Jul | -0.40% | -1.60% | | 06:30 | CHF | Real Retail Sales Y/Y Jul | 0.90% | 1.20% | | 06:30 | CHF | CPI M/M Aug | 0.40% | 0.00% | | 06:30 | CHF | CPI Y/Y Aug | 3.50% | 3.40% | | 07:30 | CHF | SVME - PMI Aug | 58 | | 07:45 | EUR | Italy Manufacturing PMI Aug | 48.4 | 48.5 | | 07:50 | EUR | France Manufacturing PMI Aug F | 49 | 49 | | 07:55 | EUR | Germany Manufacturing PMI Aug F | 49.8 | 49.8 | | 08:00 | EUR | Eurozone Manufacturing PMI Aug F | 49.7 | 49.7 | | 08:00 | EUR | Italy Unemployment Jul | 8.10% | 8.10% | | 08:30 | GBP | Manufacturing PMI Aug F | 46 | 46 | | 09:00 | EUR | Eurozone Unemployment Rate Jul | 6.60% | 6.60% | | 11:30 | USD | Challenger Job Cuts Y/Y Aug | 25.81K | | 12:30 | USD | Initial Jobless Claims (Aug 26) | 250K | 243K | | 12:30 | USD | Nonfarm Productivity Q2 | -4.60% | -4.60% | | 12:30 | USD | Unit Labor Costs Q2 | 10.60% | 10.80% | | 12:30 | CAD | Building Permits M/M Jul | -1.50% | -1.50% | | 13:30 | CAD | Manufacturing PMI Aug | 52.5 | | 13:45 | USD | Manufacturing PMI Aug F | 51.3 | 51.3 | | 14:00 | USD | ISM Manufacturing PMI Aug | 52.6 | 52.8 | | 14:00 | USD | ISM Manufacturing Prices Paid Aug | 59.5 | 60 | | 14:00 | USD | ISM Manufacturing Employment Index Aug | 49.9 | | 14:00 | USD | Construction Spending M/M Jul | -0.10% | -1.10% | | 14:30 | USD | Natural Gas Storage | 58B | 60B |
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