GBPUSD TECHS: Bulls Remain In The Driver’s Seat
- RES 4: 1.3165 Bull channel top drawn from the Mar 8 low
- RES 3: 1.3131 1.00 proj of the May 25 - Jun 16 - Jun 29 price swing
- RES 2: 1.3090 High Apr 21
- RES 1: 1.3035 High Apr 22 2022
- PRICE: 1.3009 @ 05:57 BST Jul 13
- SUP 1: 1.2904/2848 Low Jul 12 / High Jun 16
- SUP 2: 1.2751/2674 20-day EMA / Low Jul 6
- SUP 3: 1.2674 Low Jul 6
- SUP 4: 1.2625/13 50-day EMA / Channel base drawn from Mar 8 low
GBPUSD bulls remain in the driver’s seat. This week’s clearance of resistance at 1.2848, the Jun 16 high, confirms a resumption of the medium-term uptrend and maintains the bullish price sequence of higher highs and higher lows. Note that moving average studies are in a bull-mode position. The focus is on 1.3035 next, the Apr 22 2022 high. Initial firm support lies at 1.2751, the 20-day EMA.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
AUSSIE BONDS: Curve Flattens On Tuesday
ACGB's sit 1bp cheaper to 6bps richer across the major benchmarks, the curve has twist flattened piboting on 5s.
- XM (+0.03) and YM (+0.01) are a touch firmer, early gains extended as spillover from PBOC's cut to the 7-Day Repo Rate to 1.90%. The move didnt follow through and narrow ranges were observed for the remainder of the session.
- RBA dated OIS have been stable today, a terminal rate of 4.47% is seen in November.
- NAB has lifted their RBA terminal rate forecast to 4.6% from 4.35%, the bank now sees 25bp hikes in July and August.
- The CBA household spending intentions (HSI) rose 3.1% m/m and 4.7% y/y. Westpac Consumer Confidence rose 0.2% to 79.2. NAB Business Confidence fell to -4 from 0 in May and Business Conditions fell to 8 from 14.
- The local data docket is empty tomorrow.
SCHATZ TECHS: (U3) Corrective Bounce
- RES 4: 105.975 High May 17
- RES 3: 105.875 High Jun 1 and key short-term resistance
- RES 2: 105.815 High Jun 4
- RES 1: 105.655 High Jun 6 and key near-term resistance
- PRICE: 105.490 @ 05:31 BST Jun 13
- SUP 1: 105.335 Low Jun 6
- SUP 2: 105.330 Low May 26 and key support
- SUP 3: 105.000 Round number support
- SUP 4: 104.960 Low Low Mar 13 (cont)
Schatz futures remain below 105.875, the Jun 1 high. The recent recovery is considered corrective - for now. A bearish theme remains intact and the focus is on key short-term support at 105.330, the May 26 low and bear trigger. Clearance of this support would confirm a resumption of the bear cycle that started in March and open the 105.00 handle. Key short-term resistance to watch is seen at 105.655, the Jun 6 high. A break would alter the picture.
EQUITIES: Tech Plays Still Outperforming, PBoC Rate Cuts Helps At The Margins
Regional equities are mostly tracking higher. The China PBoC 7-day cut providing some support, but other themes have been evident. Japan stocks once again leading the move higher. Tech related indices have also risen, following strong gains in Monday US trade. US futures are firmer, Eminis last near 4400, +0.20%, while Nasdaq futures continue to outperform (+0.40%).
- Japan bourses have benefited from positive tech spill over from Monday US trade, while SoftBank rose as much as 7.7% on reports that its Arm chip unit could receive investment from Intel.
- At the break, the HSI is up 0.40%, just below session highs, the tech sub index is +2.10%. China's CSI 300 is only +0.12% higher, with little aggregate benefit from the 7-day repo cut by the PBoC. Still, the real estate sub index is slightly firmer at +0.43%.
- The Taiex is up +1.60%, following the strong +3.3% rally in the US SOX on Monday. The Kospi is +0.40%, but the Kosdaq is doing better at +1.35%.
- In SEA trends are more mixed, Malaysia stocks off by 0.45%, while Indonesia stocks are struggling to stay in positive territory. Some carry over from weaker energy/crude palm oil prices may be weighing.
