Top of main content
Daily FX Focus

16 Jul 2024

Important Risk Disclosure

  • The investment decision is yours but you should not invest in this product unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation and investment experience.
  • Investment involves risk. Loss may be incurred as well as profits made as a result of buying and selling investment products.
  • Currency conversion risk - the value of your foreign currency and RMB deposit will be subject to the risk of exchange rate fluctuation. If you choose to convert your foreign currency and RMB deposit to other currencies at an exchange rate that is less favourable than the exchange rate in which you made your original conversion to that foreign currency and RMB, you may suffer loss in principal.
  • RMB is currently not freely convertible and subject to regulatory restrictions (which might be changed from time to time).

AUD

Support / Resistance

vs USD  0.6651 / 0.6832    ⬇

AUD fell against the dollar yesterday as USD rose broadly due to improved risk aversion and firm speculation for Fed rate cuts in Sept. Investors await the US Retail Sales and Aussie Employment for June. AUDUSD fell 0.35% yesterday while AUDHKD ended at 5.27 level.

EUR

Support / Resistance

vs USD   1.0731 / 1.0989   ⬇

EUR weakened against the USD yesterday as the USD strengthened after falling initially, rebounding on increasing bets of a Trump win. Focus moves to ECB's rate decision, Eurozone industrial production and German ZEW survey. EURUSD fell 0.11% yesterday while EURHKD ended at 8.50 level.

GBP

Support / Resistance

vs USD   1.2719 / 1.3103    ⬇

GBP fell against the dollar yesterday as Fed speak drives broader market sentiment as investors hope for rate cuts, while eyes on upcoming UK CPI inflation release. GBP was also undermined as UK property asking prices fell more than usual. GBPUSD fell 0.20% yesterday while GBPHKD ended at 10.12 level.

NZD

Support / Resistance

vs USD   0.6023 / 0.6145   ⬇

NZD edged lower against the dollar yesterday as business NZ PSI drops to 40.2 in June, marking its fourth consecutive monthly decrease. The weaker Chinese economic data and modest rebound of the USD continue to undermine NZD. NZDUSD fell 0.72% yesterday while NZDHKD ended at 4.74 level.

RMB

Support / Resistance

vs USD   7.2462 / 7.2741   ⬆

CNH fell against the dollar yesterday after weaker-than-expected Chinese GDP which grew 4.7% y/y. CNH was also undermined after June retail sales growth showed slowest since Dec 2022 but industrial output rose more than forecast. USDCNH rose 0.04% yesterday while CNHHKD ended at 1.07 level.

CAD

Support / Resistance

vs USD   1.3594 / 1.3763   ⬇

CAD weakened against the dollar yesterday, falling to a 12-day low as Bank of Canada business survey pointed to a decline in inflation, raising bets that the BOC will cut rate further this month. A fall in oil prices also weighed on CAD. USDCAD rose 0.37% yesterday while CADHKD ended at 5.70 level. 

JPY

Support / Resistance

vs USD   156.11 / 160.95   ⬆

JPY ended slightly weaker against the dollar yesterday as the USD strengthened on increasing bets of a Trump win after an initial dip on Powell's comments. JPY was also weighed by a rise in longer dated US treasury yields. USDJPY rose 0.08% yesterday while JPYHKD ended at 4.93 level. 

CHF

Support / Resistance

vs USD   0.8896 / 0.9033   ⬇

CHF weakened against the dollar yesterday as the USD strengthened against major peers after an initial dip during Powell's speech, rebounding on bets of a Trump win. However, safe haven flows due to political uncertainty limited CHF losses. USDCHF rose 0.18% yesterday while CHFHKD ended at 8.71 level.

SGD

Support / Resistance

vs USD   1.3359 / 1.3556   ⬇

SGD ended weaker against the US dollar yesterday as the USD strengthened after easing initially while longer dated US treasury yields rose on growing bets of Donald trump winning the presidential race after a failed assassination attempt. USDSGD rose 0.22% yesterday while SGDHKD ended at 5.80 level.

Back to top  

Your FX needs are well taken care of with our comprehensive suite of FX solutions

Open an investment account and start your wealth journey with us

Related Insights

The UK’s Labour Party has won a commanding majority in the general election, ending 14…[8 Jul]
Inflation is not falling as fast as the RBA had hoped…[8 Jul]
The outlook for EM currencies on the whole has not yet become favourable…[1 Jul]
FX markets are seeing key differences in the tone and pace of G10 central bank exit...[25 Jun]

Disclaimer

This document has been prepared for information only. Information contained in this document is obtained from sources believed to be reliable; however HSBC does not guarantee its completeness or accuracy. The information contained in this document is intended for Singapore residents only and should not be construed as an offer to purchase or subscribe for any investment where such activities would be unlawful under the laws of such jurisdiction, in particular the United States of America and Canada. This material is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment or securities nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. The specific investment objectives, personal situation and particular needs of any person have not been taken in consideration. You should therefore not rely on it as investment advice. Opinions and estimates expressed are subject to change without notice and HSBC expressly disclaims any and all liability for representations and warranties, express or implied, contained herein, or for omissions. All charts and graphs are from publicly available sources or proprietary data. The mention of any security should not be construed as representing a recommendation to buy or sell that security, nor does it represent a forecast on future performance of the security.

This document is prepared by HSBC Bank (Singapore) Limited (“HBSP”) to its customers for general reference only. HBSP is not responsible for any loss, damage or other consequences of any kind that you may incur or suffer as a result of, arising from or relating to your use or reliance of this document. HBSP gives no guarantee, representation or warranty as to the accuracy, timeliness or completeness of this document.

This document is prepared by The Hongkong and Shanghai Banking Corporation Limited (‘HBAP’), 1 Queen’s Road Central, Hong Kong. HBAP is incorporated in Hong Kong and is part of the HSBC Group.