Euro Sees Near-Term Boost, Commodity Currencies Pressured
| Action Insight Mid-Day Report 5-24-23 |
Euro Sees Near-Term Boost, Commodity Currencies Pressured |
Today's trading session saw broad selling pressure on commodity currencies, partially due to risk-off sentiment prevalent in the market and partly due to the dovish rate hike from RBNZ. As it stands, Euro seems to be the major benefactor, in part due to its rebound against Swiss Franc. However, despite a slight recovery, the common currency is still considered bearish against Dollar in the near term. The uplift in Sterling following the Consumer Price Index (CPI) data proved to be short-lived. Yen, for its part, is consolidating its recent losses and appears still poised for a near-term decline. From a technical perspective, EUR/CHF could be a focal point for the remainder of the day. Break of 0.9760 resistance level will confirm short-term bottoming at 0.9675, with a bullish convergence condition in 4H MACD. This could lead to a stronger rebound towards 0.9878 resistance level. If this occurs, stronger bounce in EUR/CHF could potentially aid Euro in rebounding further against both the Dollar and Sterling. In Europe, at the time of writing, FTSE is down -1.77%. DAX is down -1.68%. CAC is down -1.76%. Germany 10-year yield is down -0.0206 at 2.451. Earlier in Asia, Nikkei dropped -0.89%. Hong Kong HSI dropped -1.62%. China Shanghai SSE dropped -1.28%. Singapore Strait Times dropped -0.12%. Japan 10-year JGB yield rose 0.0045 to 0.409. |
EUR/AUD Daily Outlook Daily Pivots: (S1) 1.6224; (P) 1.6268; (R1) 1.6299; More... Range trading continues in EUR/AUD and intraday bias remains neutral. Fall from 1.6785 might be a correction to whole up trend from 1.4281. Break of 1.6134 will target 38.2 retracement of 1.4281 to 1.6785 at 1.5828, which is inside 1.5254/5976 support zone. Nevertheless, sustained break of 1.6354 minor resistance will turn bias back to the upside for retesting 1.6785 high instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | Retail Sales Q/Q Q1 | -1.40% | 0.20% | -0.60% | -1.00% | | 22:45 | NZD | Retail Sales ex Autos Q/Q Q1 | -1.10% | -1.00% | -1.30% | -1.60% | | 00:30 | AUD | Westpac Leading Index M/M Apr | 0.00% | 0.00% | | 02:00 | NZD | RBNZ Rate Decision | 5.50% | 5.50% | 5.25% | | 03:00 | NZD | RBNZ Press Conference | | 06:00 | GBP | CPI M/M Apr | 1.20% | 0.80% | 0.80% | | 06:00 | GBP | CPI Y/Y Apr | 8.70% | 8.20% | 10.10% | | 06:00 | GBP | Core CPI Y/Y Apr | 6.80% | 6.20% | 6.20% | | 06:00 | GBP | RPI M/M Apr | 1.50% | 1.70% | 0.70% | | 06:00 | GBP | RPI Y/Y Apr | 11.40% | 11.20% | 13.50% | | 06:00 | GBP | PPI Input M/M Apr | -0.30% | -0.50% | 0.20% | | 06:00 | GBP | PPI Input Y/Y Apr | 3.90% | 3.80% | 7.60% | 7.30% | | 06:00 | GBP | PPI Output M/M Apr | 0.00% | -0.10% | 0.10% | 0.00% | | 06:00 | GBP | PPI Output Y/Y Apr | 5.40% | 7.40% | 8.70% | 8.50% | | 06:00 | GBP | PPI Core Output M/M Apr | 0.00% | 0.10% | 0.30% | | 06:00 | GBP | PPI Core Output Y/Y Apr | 6.00% | 7.30% | 8.50% | 8.30% | | 08:00 | EUR | Germany IFO Business Climate May | 91.7 | 93.4 | 93.6 | 93.4 | | 08:00 | EUR | Germany IFO Current Assessment May | 94.8 | 95.2 | 95 | 93.1 | | 08:00 | EUR | Germany IFO Expectations May | 88.6 | 91.7 | 92.2 | 91.7 | | 14:30 | USD | Crude Oil Inventories | 1.5M | 5.0M | | 18:00 | USD | FOMC Minutes |
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