Action Insight Weekly Report 7-4-20

Markets Welcome Solid Economic Data and Ignored Coronavirus Numbers

Action Insight Weekly Report 7-4-20 Markets Welcome Solid Economic Data and Ignored Coronavirus Numbers Markets looked rather indifferent to the resurgence of coronavirus infections. Daily new cases surged to new high above 200k. Total cases broke 11m while deaths is closing in to 530k. But traders and investors couldn't care less. Instead, sentiments were lifted by hope of recovery ahead, with Q3 already started. US ISM manufacturing turned back into expansion while non-farm payrolls grew 4.8m. France PMIs also turned back into expansion while UK PMIs steadied. China's PMI services even suggests strong growth ahead. Positive sentiments were reflected in NASDAQ and China's Shanghai SSE, but not so much in other stock indices. While commodity currencies ended the week higher together with Sterling, strength is Aussie is far too weak considering the late rally in Chinese stocks. Euro also ended as one of the weakest together with Dollar and Yen. It might take a couple of weeks more for the markets to sort out a coherent direction among themselves. Full Report Here Central Bank Views | China Watch | Oil N' Gold | Special Topics AUD/USD Weekly Outlook AUD/USD's consolidative trading continued last week and outlook is unchanged. Initial bias remains neutral this week first. We'd still expect correction from 0.7064 to extend with another falling leg. On the downside, break of 0.6776 will turn bias to the downside for 38.2% retracement of 0.5506 to 0.7064 at 0.6469. Nevertheless, sustained break of 0.7064 will resume whole rise from 0.5506 instead. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings The Weekly Bottom Line: Rising Infections Pose a Challenge to Economic Recovery Forward Guidance: US Virus Resurgence a Cautionary Tale amid Increasingly Positive Economic Data Week Ahead: As Good as It Gets? Week Ahead – Economic Reopening Continues RBA to Stay Put as Flare-Up Threatens Australia's Envious Virus Record Sunset Market Commentary Weekly Economic and Financial Commentary: Waves of Data Headed into Independence Day Fundamental Analysis | Technical Analysis In-depth Reports Policy Divergence Continues to Support AUDNZD Strength PBOC to Ease Less Aggressively as Debt Problems Intensify after Months of Liquidity Injection Emerging from Lockdown: A V-Shaped Recovery or False Optimism? HKD Supported by Low US Yield and Seasonal Factors, Despite Huge Political Uncertainty Ahead

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