Tools for Traders Top Movers | Heat Map | Pivot Point | Pivot Meters | Action Bias | Volatility Charts Action Insight Mid-Day Report: Dollar Attempts to Extend Rebound on ISM Price Paid, But Failing So Far Some volatility is finally see in early US session even though there is still a lack of follow through momentum. US equities open lower with DOW losing over 150 pts, back below 24000 handle at the time of writing. Dollar accompanies the fall in DOW with a rally attempt. The was some brief support to the greenback on much stronger than expected ISM prices paid, but the the impact quickly faded. For now, Sterling continues to trade as the strongest one for the day, followed by Euro. Dollar and Yen are among the weakest. But Australian Dollar is also soft ahead of RBA rate decision in the upcoming Asian session. Traders Were Bullish on Petroleum but Turned Bearish on Natural Gas With the exception of natural gas, speculators were bullish over the energy complex in the week ended March 27. Net LENGTH for crude oil futures jumped +12 062 contracts from a week ago to 715 7708. NET LENGTH of heating oil gained +1 948 contracts to 14 987 while net LENGTH for gasoline rose 1 689 contracts to 79 902. Net SHORT for natural gas added +5 256 contracts to 94 161 for the week. Hong Kong Dollar Weakest in Three Decades Due to Ample Liquidity USDHKD has continued flirting slightly below 7.85, the weak end of its trading band. Since late-February, the market has been speculating about what and when the Hong Kong Monetary authority HKMA, the de facto central bank of Hong Kong, would do to maintain the peg. We judge that the relative Hong Kong dollar weakness of late is driven by yield differential. If the weak end (7.85) of the peg is reached, the HKMA is obliged to intervene by buying Hong Kong dollar (HKD) in order to maintain the currency peg with the US dollar (USD). The intervention would drain interbank liquidity and cause HIBOR to increase. We do not expect the pace of interest rate increase would imitate that of the previous Fed's rate hike cycle in 2004-2006. Action Insight | Market Overview | Central Bank Views | China Watch | Special Topics | Oil N' Gold | Live Comments Technical Outlook AUD/USD Daily Outlook Daily Pivots: (S1) 0.7662; (P) 0.7684; (R1) 0.7698; More... No change in AUD/USD's outlook. With 0.7784 minor resistance intact, further decline is expected. Current fall fro 0.8135 would target a test on 0.7500 key support level. At this point, we'll stay cautious on strong support from there to bring rebound. On the upside, however, break of 0.7784 will suggest near term reversal and turn bias to the upside for 0.7915 resistance first. Suggested Readings AUDUSD: Weakens, Looks To Resume Short Term Downtrend RBA Set to Remain on Hold as Trade Uncertainties Loom CADJPY Edges Higher after Touching 16-Month Low of 80.55 China And U.S Tit-For-Tat Tariffs Start Dollar Inches Down As Trade Woes Linger, US Data & RBA Decision Eyed EURUSD Holds Within Sideways Channel In Short-Term, Ascending Move In Medium-Term Economic Data
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