|Day's range||0.725 - 0.727|
|52-week range||0.6792 - 0.7559|
It was risk on through the Asian session, with equity markets rallying, a jump in commodity prices supporting the Aussie Dollar that managed to shake off weak stats early on, with retail sales the next hurdle for the Pound this morning.
The New Zealand dollar fell rather significantly at the open on Wednesday, reaching down to the 0.73 level. That area offered enough support to turn things around though, and as I record this we are trying to find our way higher.
If the pace of new hires continues to fall then this would further support the RBA’s plan to keep interest rates at historically low levels. This would put a bearish spin on the Australian Dollar.
BoC to set the tone for the Loonie later today, with inflation figures out of the Eurozone and the UK to also give some guidance on where the respective central banks are heading in the coming months.
The New Zealand dollar initially tried to rally on Tuesday but found the 0.7350 level to be a bit too resistive. We rolled over and broke towards the 0.7325 handle, and it now looks as if we may get a bit of a pullback, perhaps in a bid to find value after the recent rally.
Considering the EURUSD’s latest U-turn from two-month old descending trend-line, coupled with overbought RSI, the pair is more likely to revisit the immediate TL support, around 1.2340, breaking which 1.2300 and the 1.2260 can come alive on the chart. Should prices reverse from present levels and surpass the 1.2415 trend-line resistance, the 1.2445-50 horizontal-region could try limiting its recovery, if not, then 1.2470 and the 1.2500 round-figure might become buyers’ favorite.
The NZD/USD has been in a steady uptrend with a progressive zig-zag pattern. At this point the price is within the POC zone 0.7337-0.7348 and we could see a spike towards 0.7386 with a potential for 0.7420. However if the price breaks below 0.7335 pay attention to POC2 0.7313-0.7325 as the POC2 is also a bouncing spot. Targets will remain the same. As long as W L4 holds -0.7280, bulls should be safe.
The New Zealand dollar pulled back slightly during the trading session on Monday, breaking below the 0.7350 level, looking towards the 0.7333 level. The market looks as if it is trying to bounce from there, and if we can break above the 0.7350 level, it’s likely that we will continue to try and rally a bit.
We could be looking at a busy session for Aussie and Kiwi traders with the release of the Reserve Bank of Australia monetary policy minutes at 0130 GMT and a slew of economic data from China, starting at 0200 GMT.
Most of the pairs with the JPY, on Friday, created a shooting star on the daily chart. For the past few weeks, JPY was on the back foot and was loosing heavily against major peers. Depreciation of the Yen was supported from both sides: fundamental and technical.
It’s all eyes on the Dollar today with economic data out of the U.S and noise from the Oval Office continuing to keep the markets busy on what is a quiet day on the data front for Asia and Europe.
The Australian Dollar is trading slightly better early Monday, showing no dramatic reaction to the bombing of the Syrian chemical factories by a U.S.-led coalition early Saturday (local time).
Investor sentiment is likely to continue to be the focus this week for the Aussie and the Kiwi. The response by investors to the US-led missile attack on Syria will largely determine the price action as well as any retaliation by Syria and its allies Iran and Russia.
The Greenback reached its low of the week on Wednesday in response to upbeat comments from President Xi Jinping of China which seemed to ease tensions over a potential trade war with the U.S. The market was further supported by hawkish minutes from the U.S. Federal Reserve’s March meeting.
The New Zealand dollar broke above the 0.7350 level during the week, showing signs of strength again. However, Friday was a bit lackluster, so we may get a short-term pullback. Regardless, this is a market that looks very bullish and should continue to be so if we can avoid unnecessary headlines coming from the United States and China.
The New Zealand dollar fell on Friday, as we did get a bit of a push back against the Kiwi and reached down to the support level at 0.7350 yet again. That’s an area that has been reliable in the past, so I suspect that we will find a bit of support here again.
The New Zealand dollar rallied a bit during the trading session on Thursday, reaching towards the 0.74 level. That of course will be a bit of psychological resistance, but I think that short-term pullbacks will be the key to making money in this market as they could offer value.
China sees its first trade deficit with the U.S in over a year, as the markets consider the prospects of conflict with Syria, a more aggressive FED, a lingering threat of a trade war and softer economic stats out of key economies.
Aussie and Kiwi investors are expected to continue to react to appetite for risk, but now have to be more concerned about another rate hike by the Fed.
The New Zealand dollar bounced from the 0.7350 level at the open on Wednesday and continues to remain slightly elevated. It looks as if this area is going to offer a significant amount of support, and a break above the 0.74 level could be next.
NZDUSD’s U-turn from 0.7345 horizontal-line again fuels the pair towards confronting the 0.7375 resistance-mark, break of which could escalate its up-moves in direction to the 0.7400 round-figure. However, pair’s rise beyond 0.7400 may only have 0.7410 as a barrier to clear before challenging the mid-February highs near 0.7435. Should overbought RSI continue restricting the pair’s strength and drag it beneath the 0.7345, the 0.7320, the 0.7300 and an upward slanting TL figure of 0.7280 are likely consecutive supports to appear on the chart. Moreover, pair’s dip below 0.7280 could avail the 0. ...
The New Zealand dollar broke higher during the trading session on Tuesday, slicing through the 0.7350 level. This market should continue to go higher, but at this point I suspect that pullbacks will be part of the landscape.
Today, three great setups with the weaker USD. First one is the USDCAD which yesterday tested the neckline of the large Head and Shoulders pattern. The test was positive for sellers and the price bounced from that resistance. That confirms the mid-term sell signal on this instrument.
China’s Premier Xi restores confidence in the financial markets this morning, supporting riskier assets and commodity currencies, with Trump likely to respond later in the day to provide further direction.
The New Zealand dollar initially pulled back during the trading session on Monday, but then rallied towards the 0.7325 handle. The market continues to show the overall risk appetite of the markets, and they continue to favor the New Zealand dollar in times of risk taking, so pay attention to the stock markets.