The early price action suggests the selling may be greater than the buying at current price levels. Traders are lightening up on the long side because of technical resistance and uncertainty of the Brexit vote.
It has been a quiet Tuesday session, with limited movement from the Australian, New Zealand and Chinese currencies. With no major U.S. events on the calendar, traders can expect these currencies to remain steady during the day.
The concurrent rallies in the AUD/USD and NZD/USD do not signify a major shift in investor sentiment. What they probably represent is position-adjustments to the drop in the chances of an RBA rate cut in November, and the jump to 93.5% in the probability of a Fed rate cut at the end of October.
Based on the early price action and the current price at .6402, the direction of the NZD/USD the rest of the session on Monday is likely to be determined by trader reaction to Friday’s close at .6386.
There are no major economic releases this week so the direction of the AUD/USD and NZD/USD is likely to be determined by trader reaction to any news about U.S.-China trade relations and Brexit negotiations.
The Australian and NZ dollars have steadied on Friday, after impressive gains of 1.0% on Thursday. Chinese GDP missed its estimate, but the yuan is holding its own against the U.S. dollar.
Before the release of the jobs data, a senior Reserve Bank official said, Australia’s property downturn is not only hitting household consumption, it’s a big drag on economic growth and inflation.
Based on the early price action and the current price at .6294, the direction of the NZD/USD on Thursday is likely to be determined by trader reaction to the short-term 50% level at .6279.
Keep an eye on the Unemployment Rate. This is what the Reserve Bank of Australia is watching. Another increase will cause a surge in the chances of a rate cut by the RBA next month.
The markets are calm in early Wednesday trade. The Chinese, Australian and New Zealand currencies are all showing limited movement in the Asian session. With the U.S. releasing retail sales reports later in the day, we could see stronger market movement in the North American session.
Wednesday’s Asian session was calm, as the Chinese yuan and NZ and Australian dollars are steady. The RBA minutes were dovish, and New Zealand will release CPI for the third quarter.
Based on the early price action and the current price at .6314, the direction of the NZD/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at .6294.
Even though the Aussie and Kiwi were boosted by the news, I don’t think it was particularly bullish because the older tariffs remain in place, and a decision had not been made over additional U.S. tariffs scheduled for December.
Based on the early price action and the current price at .6342, the direction of the NZD/USD the rest of the session on Friday is likely to be determined by trader reaction to the downtrending Gann angle at .6346.
Prices could surge further later in the session if the two countries could agree to at least a partial agreement on issues such as currency and agriculture buying. This would leave more controversial issues such as protections against Chinese theft of U.S. intellectual property, for later negotiations
The U.S. dollar was broadly lower on Thursday, but has leveled off in Friday trade. The Australian and Chinese currencies are slightly higher in early Friday trade, while the New Zealand dollar is flat.
The U.S. dollar is lower in early trading on Thursday. The Australian and NZ dollars have posted gains, and the Chinese yuan is also higher. We could see stronger movement in the currency markets in the North American session, with the release of U.S. consumer inflation reports.
Traders will be focused on the Fed minutes from its mid-September policy meeting. Traders are hoping the minutes offer clues as to whether further policy easing is yet to come.
The U.S. dollar has lost ground in the Asian session, as the New Zealand dollar and Chinese yuan have posted gains. The Australian dollar is showing little movement. I expect the European and North American sessions to be calm.
Good morning, as we begin the new trading week. The NZ dollar is flat, while the Aussie is slightly lower. The Chinese yuan has been flat for almost a week, due to an extended bank holiday in China, which ends on Monday.
Based on the early price action and the current price at .6314, the direction of the NZD/USD the rest of the session on Monday is likely to be determined by trader reaction to the 50% level at .6328.
The Australian and New Zealand Dollars finished higher last week with the Aussie eking out a small gain. There was also some debate as to whether the Reserve Banks of Australia and New Zealand would take a pass on a rate cut in November. Nearly two weeks ago, the Reserve Bank of New Zealand (RBNZ)
The U.S. dollar is slightly higher against its Australian and New Zealand counterparts in Friday trade. The Chinese yuan is flat as Chinese banks remain closed for a holiday. The U.S. releases nonfarm payrolls and wage growth at 12:30 GMT, and traders should treat these indicators as market-movers.
At the start of the week, the short-term outlook for the AUD/USD and NZD/USD was extremely bearish, however, economic events in the U.S. this week have weakened the U.S. Dollar, encouraging Aussie and Kiwi traders to lighten up on the short side.