Swiss Franc Down in Mixed Markets, Kiwi Awaits RBNZ Cut
| Action Insight Mid-Day Report 10-8-24 |
Swiss Franc Down in Mixed Markets, Kiwi Awaits RBNZ Cut |
Movements in the currency markets today are somewhat mixed today. Commodity currencies are generally underperforming, led by a sharp decline in Australian Dollar. Investor sentiment in Asia was dampened by the lack of detailed stimulus measures from China, following the much-anticipated post-holiday announcement. This disappointment was starkly reflected in Hong Kong’s stock markets, which saw a massive -9.41% drop with record-breaking trading volume. Swiss Franc, however, sits at the bottom of the currency performance chart despite the absence of any immediate fundamental drivers. A plausible explanation is tied to ECB’s top hawks signaling another 25bps rate cut at the next meeting. With this expectation already priced into Euro, pressure may now be shifting to SNB to respond with a larger rate cut in December to weaken the Franc. Sterling leads the currency gains today, followed by Japanese Yen. Yen continues its rebound, boosted by Japan’s verbal intervention efforts as USD/JPY inched closer to 150 level earlier in the week. Meanwhile, Dollar remains mixed, with traders eyeing Thursday's US CPI release for further direction.... |
USD/CHF Mid-Day Outlook Daily Pivots: (S1) 0.8520; (P) 0.8559; (R1) 0.8584; More… USD/CHF recovered today but stays below 0.8606 temporary top. Intraday bias remains neutral at this point. Further rise is in favor as long as 0.8499 minor support holds. Above 0.8606 will target 38.2% retracement of 0.9223 to 0.8374 at 0.8698. Sustained break there will argue that fall from 0.9223 has completed after defending 0.8332 low. Next target will be 61.8% retracement at 0.8899. On the downside, break of 0.8499 will turn bias back to the downside for retesting 0.8374 low instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | AUD | Westpac Consumer Confidence Oct | 6.20% | -0.50% | | 23:30 | JPY | Labor Cash Earnings Y/Y Aug | 3.00% | 3.10% | 3.60% | 3.40% | | 23:30 | JPY | Overall Household Spending Y/Y Aug | -1.90% | -2.60% | 0.10% | | 23:50 | JPY | Current Account (JPY) Aug | 3.02T | 2.41T | 2.80T | | 00:30 | AUD | RBA Meeting Minutes | | 00:30 | AUD | NAB Business Confidence Sep | -2 | -4 | -5 | | 00:30 | AUD | NAB Business Conditions Sep | 7 | 3 | | 05:00 | JPY | Eco Watchers Survey: Current Sep | 47.8 | 49.4 | 49 | | 06:00 | EUR | Germany Industrial Production M/M Aug | 2.90% | 0.80% | -2.40% | -2.90% | | 06:45 | EUR | France Trade Balance (EUR) Aug | -7.4B | -5.5B | -5.9B | -6.0B | | 10:00 | USD | NFIB Business Optimism Index Sep | 91.5 | 91.7 | 91.2 | | 12:30 | USD | Trade Balance (USD) Aug | -70.4B | -71.1B | -78.8B | -78.9B | | 13:00 | CAD | Trade Balance (CAD) Aug | -1.1B | 0.2B | 0.7B | -0.3B |
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