The Australian dollar and Chinese yuan are trading sideways, shrugging off key Australian and Chinese releases. The New Zealand dollar is lower against the greenback.
We could see a friendly tone throughout the session. Because of the U.S. bank holiday, there is nothing to stop a short-covering rally. The selling pressure could resume on Tuesday when U.S. traders return and the Treasury market reopens.
The new trading week has started off quietly. The Australian dollar and Chinese yuan are slightly higher against the greenback, with the New Zealand dollar is flat.
The price action in the AUD/USD and NZD/USD suggests traders are starting to price in further rate cuts by the RBA and RBNZ, despite the optimistic developments over the trade deal. Furthermore, rising Treasury yields point toward increasing expectations of an improving U.S. economy. Yields are nearing
Based on Friday’s price action and the close at .6327, the direction of the NZD/USD on Monday is likely to be determined by trader reaction to the short-term 50% level at .6335.
The Australian dollar has lost ground after a dovish rate statement from the RBA. The New Zealand dollar and Chinese yuan are steady, and I do not expect much movement from these currencies before next week.
It has been an uneventful Asian session, with the New Zealand dollar and Chinese yuan trading sideways. The Aussie is showing gains after the country’s trade surplus widened.
There was limited movement in the Asian session. The Australian dollar yawned after the RBA held rates. The New Zealand dollar and Chinese yuans are showing slight gains.
The weak jobs data is causing problems for NZD/USD traders because the majority of economists expect the RBNZ to cut the official cash rate to a fresh record low of 0.75% on November 13, while traders are less certain.
Based on the early price action and the current price at .6374, the direction of the NZD/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the steep downtrending Gann angle at .6386.
The U.S dollar lost ground in the Asian session, as the Australian, New Zealand and Chinese currencies have all posted gains. With the U.S. releasing Services PMI at 15:00 GMT, so we could see some volatility in the North American session.
Weak domestic data from Australia and general uncertainty ahead of Tuesday’s RBA policy meeting are likely to keep a lid on the AUD/USD and NZD/USD the rest of the session on Monday.
Based on last week’s price action and the close at .6428, the direction of the NZD/USD this week is likely to be determined by trader reaction to the uptrending Gann angle at .6404.
The Aussie and Kiwi could see further upside action this week due to improving financial market sentiment, and the interpretation that RBA and RBNZ have taken rates far enough for now. Good news over U.S.-China trade relations could put further pressure on the U.S. Dollar if traders continue to sell
The Australian and New Zealand dollars are showing some life and have gained ground on Friday. The Chinese yuan is flat, despite a positive Chinese manufacturing report.
The Aussie and Kiwi pulled back from their highs on Friday in reaction to the U.S. Non-Farm Payrolls report. Non-Farm payrolls rose by 128,000 in October as the U.S. economy overcame the weight of the autoworkers’ strike and created jobs at a pace well above expectations.
Based on the early price action and the current price at .6437, the direction of the NZD/USD the rest of the session on Friday is likely to be determined by trader reaction to the intermediate Fibonacci level at .6441.
Based on Friday’s price action, the NZD/USD is in a strong position to continue the rally into next week. The Forex pair is trading on the strong side of a long-term downtrending Gann, which is a potentially bullish sign of further upside action.
The Australian and New Zealand dollars are higher on Thursday, after posting positive domestic data. As well, the Federal Reserve’s rate cut is weighing on the U.S. dollar. Chinese manufacturing data was weak, but this hasn’t stopped the yuan from gaining ground.
Ahead of the Fed announcements at 18:00 GMT, we expect to see a slightly better Aussie and a weaker Kiwi. The Fed is largely expected to cut its benchmark rate by 25 basis points. This has been priced in for a few weeks. This news is not likely to have an effect on the current movement in the Australian
The markets were calm in the Asian session, as the Australian and New Zealand dollars and the Chinese yuan showed limited movement. We could see stronger movement in the North American session, with the release of U.S. GDP and an expected rate cut by the Federal Reserve.
At 00:30 GMT, Australia will release its latest report on the Consumer Price Index. It is expected to show a rise of 0.5%, down from the previously reported 0.6%. Trimmed Mean CPI is expected to have risen by 0.4%.
Based on this week’s price action and Tuesday’s close at .6356, the direction of the NZD/USD on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at .6341.
In the Asian session, the Australian, New Zealand and Chinese currencies all showed slight movement. With a lack of fundamental events, any further activity on Tuesday would be due to technical moves.