|Day's range||0.633 - 0.642|
|52-week range||0.6207 - 0.6972|
The RBNZ held rates steady, leading to a surge in the Kiwi, while the Greenback was under early pressure following Trump’s Tuesday speech…
Based on the early price action in reaction to the RBNZ decision, the direction of the NZD/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the intermediate 50% level at .6396.
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 highs not seen since August 1.
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.
Trade data out of China comes in better than expected, while the RBA revised down growth projections. Stats are on the lighter side later today…
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.
Sentiment towards trade took a turn for the worse on Wednesday, with even a record Aussie trade surplus doing little to support the AUD early on…
Yesterday, we received data from the job market in New Zealand. Unemployment Rate rose higher than the analysts’ estimates. That is definitely a negative information for the NZD but the currency is suffering heavy losses since Monday.
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.
It was a positive start to the day for riskier assets, with positive sentiment towards trade talks driving the majors. Economic data is in focus later today.
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.
It’s a busy day ahead, with trade chatter supporting risk appetite ahead of the stats. UK politics will also be in focus later today…
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 out of protective hedges.
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.