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Aussies And Kiwis Rally Over A Heavily Plunging USD

Antipodeans Uplift In The Fall Of USD

AUD was the biggest gainer benefiting out of the USD plunge. During the morning session, the USD index that computes the greenback against the six significant rivals slumped to less than 96.00. US manufacturing data for February was down by 0.4 percent, second time in a row this year.  Factory activity in New York reported as 3.7 was below the market expectation.

Chotarto Morita, Chief Strategist at SMBC Nikko Securities, commented that “The 10-year yield closed below 2.6 percent, for the second time this year after closing below that level only on one day at the beginning of the year. If it stays below that level sustainably, it will be the first time since January 2018, when yields started rising on expectations of accelerating growth and inflation following tax cuts. Yields are slipping back as U.S. economic sentiment is cooling down.”

The Antipodeans, i.e. the Aussies and the New Zealand currencies were among the top players to skyrocket with the USD plunge. More than 2 percent upliftment in the iron-ore prices and a positive Asian Equity market where China outperformed the rest additionally fostered the Antipodean surge. Aussie rose by 0.5 percent touching the peak of 0.71 while Kiwi reached 0.69 level.

USD/CAD Rebounded With Crude Price Surge

USD had been already plunging since the morning hours. Canadian Dollar too suffered from its poor economic data released today.

USDCAD 1 Min 18 March 2019
USDCAD 1 Min 18 March 2019

Canada’s Manufacturing shipment data for January rose by 1.0 percent over the market expectation of 0.4 percent. The data had recorded a plunge of 1.1 percent in the previous month. Home Sales were down by 9.1 percent which was even lower than the consensus estimate of 4.0 percent decline. The home sales data had uplifted by 3.6 percent last month.  

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Crude Prices slumped in the first half of the day and rebounding losses in the latter half. The commodity-linked currency also followed the same footsteps. USD/CAD slipped from a high level of 1.3352 to 1.3304 and rallied again to 1.3340 level later the day.

 

Sterling Slips Under Brexit Chaos

The GBP/USD tumbled from its nine-month peak level to $1.3243 as uncertainty arises on UK PM Theresa May’s win in the third attempt for her Brexit Withdrawal deal lined up this week. May have had to be hard to convince the lawmakers to support her.   

Commerzbank’s Ulrich Leuchtmann said a vote on Tuesday “would constitute a signal that she considers it possible that her deal will be accepted. Admittedly, her views were wrong so often in the past that that would not necessarily constitute a strong GBP positive signal, but it should no doubt have a moderately positive effect on the British currency.”

GBPUSD 1 Min 18 March 2019
GBPUSD 1 Min 18 March 2019

USD/JPY Touching 111.30 Levels

Japanese Import and Export data for February was released today which were lower than the market expectation. Though there was an increase observed in the Merchandise Trade Balance from previous -254 billion JPY to +116.1 billion JPY, the imports were down by 6.7 percent YoY. Industrial Production for January was lower by 3.4 percent.

USD/JPY touched a high level of 111.63 and even flattered to low as 111.30 during the day.   

USDJPY 15 Min 18 March 2019
USDJPY 15 Min 18 March 2019

Euro Drifting Near Its Peak Prices

Euro touched its two-week high value earlier the day majorly as USD Index slipped following the release of a weak US economic data. This has given hopes for a dovish stance when Fed meeting will happen in this week. Delay in the US-China trade settlement, Steep reduction in manufacturing activities of the country, and Mixed Labor Market report all add to the sluggish nature of the economy bolstering an interest rate cut soon.

Sterling kept hold of the gains accumulated last week as UK PM Theresa May plans to pass her EU Withdrawal bill through the parliament for again a third time.

 

This article was originally posted on FX Empire

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