Dollar Dips Following Non-Farm Payroll Disappointment
| Action Insight Mid-Day Report 8-4-23 |
Dollar Dips Following Non-Farm Payroll Disappointment |
Dollar falls broadly in early US session following slightly below-expectation non-farm payroll job growth. However, the downside is currently limited, thanks to stronger-than-expected wage growth. The market behavior seems to suggest that traders are merely lightening their positions ahead of the weekend and CPI data release next week, rather than initiating any significant position reversals. Meanwhile, Canadian Dollar is showing a slightly steeper decline following disappointing employment data. For the moment, Australian and New Zealand Dollars are reaping the most benefits, bolstered by US futures indicating a higher open. However, their recoveries may prove to be fragile if risk-off sentiment resurfaces later in the session. Technically, near term focus in USD/CHF will be back on 0.8663 minor support if the current pull back extends. Firm break there will confirm rejection by 0.8818 support turned resistance, and thus retain near term bearishness in the pair. In other words, larger down trend from 1.0146 could be ready to resume through 0.8551 low if that happens. In Europe, at the time of writing, FTSE is down -0.29%. DAX is down -0.32%. CAC is up 0.17%. Germany 10-year yield is up 0.0074 at 2.611. Earlier in Asia, Nikkei rose 0.10%. Hong Kong HSI rose 0.61%. China Shanghai SSE rose 0.23%. Singapore Strait Times dropped -0.35%. Japan 10-year JGB yield dropped -0.0077 to 0.646. |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0920; (P) 1.0941; (R1) 1.0971; More... Intraday bias in EUR/USD is turned neutral first with current recovery. Break of 1.1046 minor resistance will argue that pull back from 1.1274 has completed at 1.0911. Intraday bias will be back on the upside for retesting 1.1274. On the downside, break of 1.0911 will resume the decline to 1.0832 support. Sustained trading below there will target 1.0609/34 cluster support. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 01:30 | AUD | RBA Monetary Policy Statement | | 06:00 | EUR | Germany Factory Orders M/M Jun | 7.00% | -2.00% | 6.40% | 6.20% | | 06:45 | EUR | France Industrial Output M/M Jun | -0.90% | -0.30% | 1.20% | 1.10% | | 08:00 | EUR | Italy Industrial Output M/M Jun | 0.50% | 0.00% | 1.60% | 1.70% | | 08:30 | GBP | Construction PMI Jul | 51.7 | 48.2 | 48.9 | | 09:00 | EUR | Eurozone Retail Sales M/M Jun | -0.30% | 0.30% | 0.00% | 0.60% | | 12:30 | USD | Nonfarm Payrolls Jul | 187K | 200K | 209K | | 12:30 | USD | Unemployment Rate Jul | 3.50% | 3.60% | 3.60% | | 12:30 | USD | Average Hourly Earnings M/M Jul | 0.40% | 0.30% | 0.40% | | 12:30 | CAD | Net Change in Employment Jul | -6.4K | 15.5K | 59.9K | | 12:30 | CAD | Unemployment Rate Jul | 5.50% | 5.50% | 5.40% | | 14:00 | CAD | Ivey PMI Jul | 50.2 |
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