The direction of the AUD/USD and NZD/USD this week will likely be determined by investor demand for risk. And this is likely to be controlled by U.S. China relations. There are no major reports from Australia and New Zealand this week.
Even after trading at the highest levels in eighteen-months, the USDCAD has to close beyond 1.3410 on a weekly closing basis in order to aim for 1.3450 and the 1.3500 resistances-levels; however, the 1.3585-1.3600 confluence-region, including upper-line of an ascending trend-channel & horizontal-barrier
With Australian and New Zealand Dollar investors focusing primarily on U.S.-China trade relations and a risk-off environment, today’s U.S. economic events may take a backseat. Look for further downside pressure today especially if U.S. equity markets continue to weaken.
The AUD/USD is under pressure on Wednesday after investors pushed potential rate hikes by the Reserve Bank of Australia further into the future in the wake of disappointing third-quarter economic growth. Economists expect the central bank to keep the cash rate on hold at 1.5 percent until at least the
In spite of the EURUSD’s recent recovery, the pair is still left to surpass 1.1430-35 resistance-confluence, comprising 50-day SMA & immediate TL barrier, which in-turn may trigger the quote’s dip to 1.1300 but an upward slanting support-line, at 1.1280, can limit its additional downside
The Aussie and Kiwi strengthened last week because traders perceived the events as a bit dovish, encouraging the need for traders to aggressively adjust short positions. The CPI report, for example, suggested inflation is not overheating and may even be close to slowing down because of the plunge in
The Aussie Dollar is primarily being helped by the news that traders are now pricing in about a 40-percent chance of a rate hike in August next year, up from 25-percent before the release of the employment data.
Australian Dollar traders are bracing for the release of the Employment Change report at 0030 GMT. It is expected to show the economy added 19.9K jobs in October. The Unemployment Rate is expected to inch higher to 5.1%.
The AUD/USD and NZD/USD should continue to be underpinned as long as investors remain optimistic over the developments over US-China trade relations. Technical factors could slow down the rally because both Forex pairs are nearing potential resistance areas. A risk-off scenario because of heightened
Given the EURUSD’s extended downturn beneath 1.1300-1.1285 support-area, comprising 200-week SMA, the pair is likely to avail the 1.1120 and the 1.1020 rest-points prior to meeting the 1.1000 round-figure. In case the pair continue trading southwards past-1.1000, the 1.0835-25 and the 1.0770 may
Despite the long-term pressure from the divergence between the monetary policies of the hawkish U.S. Federal Reserve and the dovish Reserve Banks of Australia and New Zealand, it looks as if the positive trade news about the U.S. and China is likely to drive the price action on Tuesday.
The hawkish Fed and the retracement zone at .6742 to .6818 combined to stop the rally last week. If the Fed’s hawkish tone continues to drive the price action then the NZD/USD is going to have a difficult time breaking through the zone. This increases the odds of a pullback into the retracement zone
Despite the positive outlooks from the RBA and the RBNZ, Aussie and Kiwi gains are likely to be limited because the divergence in their monetary policies with the Fed continue to favor the U.S. Dollar.
The New Zealand dollar rallied significantly during the week, reaching towards the 0.65 handle. At this point, the market looks to be running into a buzz saw of resistance, in the form of the 0.6750 level.
The New Zealand dollar has been very bullish as of late, and it looks as if we are trying to continue the move higher. At this point, it looks as if the commodity currencies are a bit beaten up, and they are trying to make up for lost ground.
The Federal Open Market Committee is expected to leave interest rates unchanged. No major adjustments are expected from the meeting. However, the central bank is expected to maintain its hawkish tone in its statement, signaling a December rate hike.
We’re expecting a limited reaction to the RBA statement today unless there is a surprise in the central bank’s dialogue. Of particular interest will be the RBA’s inflation and growth expectations. We may even see some commentary on possibly tightening lending requirement which seem to be a concern for
Tuesday is mid-term Election Day in the U.S. I don’t expect to see much movement in the NZD/USD during the U.S. session. In fact, traders aren’t likely to start responding to the election results until after the polls close about Midnight GMT. At that time, the projections will start coming into the
As far as the mid-term elections are concerned, it has been generally accepted that a Republican victory would be good for business. This should be lead to increased demand for higher risk assets. Stocks should rise as well as Treasury yields, which should make the U.S. Dollar a more attractive investment
The rallies in the Aussie and Kiwi were likely long overdue and are probably being fueled by aggressive short-covering and position-squaring since the primary driver of the price action lately has been the divergence between the hawkish U.S. Federal Reserve and the dovish Reserve Bank of Australia and
Based on Wednesday’s price action, the direction of the NZD/USD on Thursday is likely to be determined by trader reaction to the short-term 50% level at .6515.
The weak Australian consumer inflation data likely means the Reserve Bank of Australia is likely to continue to hold rates at current levels. It is not expected to raise rates until 2020. Low business confidence in New Zealand is raising concerns that the Reserve Bank of New Zealand will cut interest
Even after bouncing off the 0.6500 round-figure, NZDUSD couldn’t clear the 0.6575-80 resistance-confluence, comprising 50-day SMA & a short-term descending trend-line, which triggered the pair’s pullback towards 0.6500 re-test. In case the pair refrain to respect the 0.6500 mark, the
Based on this week’s price action, the direction of the NZD/USD the rest of the week is likely to be determined by trader reaction to the 50% level at .6576.