We don’t have a lot of top-tier U.S. data on tap today, so price action will likely depend on risk sentiment.
Will USD/JPY find a reason to bounce from short-term technical support in the next trading sessions?
Before moving on, ICYMI, yesterday’s watchlist looked at AUD/USD’s channel resistance ahead of the RBA meeting minutes release. Be sure to check out if it’s still a good play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
NAHB: U.S. homebuilder sentiment jumped from 50 to an 11-month high of 55 in June as limited supply continued to encourage new construction
Westpac: New Zealand consumer sentiment index up from 77.7 to 83.1 in June but households remain deeply pessimistic amidst high living costs and mortgage rates
PBOC cut its one-year Loan Prime Rate (3.65% to 3.55%) and five-year LPR (4.3% to 4.2%) on top of last week’s stimulus measures to help spur the economy
RBA meeting minutes showed rate hike arguments were “finely balanced,” as members weighed inflation risks, tight labor market, and rising home prices
Price Action News
Overlay of AUD Pairs 15-min
A one-two punch from the PBOC and RBA convinced traders to drop the Australian dollar like it was hot today.
First, the RBA’s meeting minutes noted that arguments for and against a June rate hike were “finely balanced” and not decisively hawkish as many rate hike fans predicted earlier this month.
Meanwhile, markets were underwhelmed mainly by PBOC cutting two of its benchmark interest rates by 10 basis points when at least some traders expected bigger stimulus measures from China’s central bank.
The Chinese economy-related AUD was dumped across the board and traded in tight ranges up until a few hours into the European session.
U.S. building permits and housing starts at 12:30 pm GMT
BOJ’s meeting minutes at 11:50 pm GMT
Australia’s MI leading index at 12:30 am GMT (June 21)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
USD/JPY 15-minute Forex Chart by TV
Uncle Sam won’t print top-tier economic reports today, but that probably won’t stop traders from seeing USD/JPY’s range support.
That’s right! The pair is poppin’ up long wicks around the 141.50 zone, which lines up with an inflection point that’s been valid since last week.
In fact, 141.50 is also near the bottom of a visible range AND is near the S1 (141.60) of today’s Standard Pivot Points.
A lack of data releases could turn the markets’ focus back to the better-than-expected U.S. data we saw last week.
Some traders could also price in their hawkish sentiments ahead of Fed Governor Powell’s testimony later this week.
USD/JPY, which has already dropped by almost half of its daily average volatility, could turn higher and retest areas of interest like the 141.85 mid-range and Pivot Point (141.80) levels.
The pair could even hit its intraweek highs near 142.20 if there’s enough momentum!
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