The AUD/USD is rallying because the drop in the jobless rate is lowering expectations the Reserve Bank of Australia (RBA) won’t cut interest rates any time soon. However, traders still believe the RBA will make its first rate cut in August. Although New Zealand’s economy grew less than the Reserve Bank
The Fed is widely expected to leave its benchmark interest rate unchanged, trim the number of rate hikes projected for the rest of the year, and release long-awaited details of a plan to end the monthly reduction of its massive balance sheet.
There is only one report today in the U.S. the NAHB Housing Market Index is expected to come in at 63, up from 62. However, all eyes will be on the RBA minutes early Tuesday. After the initial reaction to the news, investors will shift their focus back to the U.S. Federal Reserve’s announcements on Wednesday
Based on last week’s close at .6846 and the two-sided price action, the direction of the NZD/USD this week is likely to be determined by trader reaction to the short-term pivot at .6831.
As far as the RBA is concerned. The minutes may clarify how many policymakers are in favor of a rate cut and how many are in favor of a rate hike. The market has already spoken, pricing in a rate cut for August.
Positive developments over U.S.-China trade relations are likely to continue to boost demand for the Australian and New Zealand Dollars. The Forex pairs could receive an additional boost if U.S. government reports come in weaker-then-expected.
With Australian futures fully pricing a quarter point cut in the 1.5 percent cash rate as soon as August, the AUD/USD is likely to remain under pressure over the near-term. The NZD/USD is also likely to follow the Aussie Dollar lower. Furthermore, stable rates in the U.S. are also expected to exert pressure
The NZD/USD Is bullish on h1 timeframe. The NZD/USD is a slow-moving pair and that is reflected on it ATR numbers, so patience is needed. In the wake of Brexit data, headlines and news, the NZD/USD is a safer pair to trade.
Based on the early price action, the direction of the NZD/USD on Wednesday is likely to be determined by trader reaction to the Fibonacci level at .6858.
On Wednesday, traders will continue to monitor the situation in the UK over Brexit. All eyes also continue to be on US-China trade negotiations, which continue to progress without making any tradable headlines. Recent comments from US Trade Representative Robert Lighthizer have noted that both economic
Look for some volatility following the release of the U.S. retail sales report at 12:30 GMT especially if the report comes out weaker than expected. Core Retail Sales are expected to have risen 0.4%, while Retail Sales are expected to come in flat.
There are no major reports out of Australia or New Zealand this week so traders are not likely to change their minds about a future rate cut by the RBA and RBNZ. This is likely to limit any gains. The wildcard will be news about a U.S.-China trade deal. The Aussie and Kiwi are likely to be supported
Based on the early price action, the direction of the NZD/USD on Friday is likely to be determined by trader reaction to a 50% level at .6768.
Based on Wednesday’s price action and today’s early move, the direction of the NZD/USD on Thursday is likely to be determined by trader reaction to the uptrending Gann angle at .6762.
The sell-off in the AUD/USD could continue on Thursday with the release of the Australian Retail Sales report and the latest news on Australia’s Trade Balance.
On Tuesday, the Reserve Bank of Australia (RBA) will release its latest Rate Statement. This could be a market moving event if the central bank continues to move towards a rate cut. On Wednesday, RBA Governor Philip Lowe is scheduled to speak. Traders will looking for comments on the direction of interest
Based on last week’s price action and the close at .6799, the direction of the NZD/USD this week is likely to be determined by trader reaction to the uptrending Gann angle at .6844.
The Aussie and Kiwi were under pressure all session on Thursday. Both currencies were pressured early by renewed tensions over U.S.-China trade negotiations and weaker-than-expected Chinese manufacturing data.Later in the session, the selling pressure increased after U.S. GDP beat expectations. This
Based on the current price at .6810, the direction of the NZD/USD on Friday is likely to be determined by an uptrending Gann angle at .6797.
The AUD/USD is trading higher on Monday in response to the news that U.S. President Donald Trump is planning to delay a list of additional Chinese tariffs that were scheduled to begin on March 1. The NZD/USD is being lifted by the news that retail sales increased more than expected in the December quarter
U.S.-China trade relations should continue to make headlines, but the primary focus for traders will be the three days of testimony by U.S. Federal Reserve Chairman Jerome Powell on Tuesday, Wednesday and Thursday. His testimony will have a major impact on U.S. Treasury yields, and this should dictate
Based on the early price action, the direction of the NZD/USD on Friday is likely to be determined by trader reaction to a pair of Gann angles at .6814 and .6799.