|Day's Range||0.708 - 0.715|
|52 Week Range||0.6919 - 0.7937|
The Australian dollar went back and forth during the week but continues to find support at the same level that we have been paying attention to for some time. Because of this, I think that we do have more of an upside risk than anything else.
The Australian dollar initially fell during the trading session on Friday but turned around to show signs of life again. Quite frankly, I think that the Aussie has found its bottom for the most part and that the market will eventually go higher.
With the poor economic numbers from the US, the market is likely to favour a move to the upside and try moving towards the top of the consolidation phase to the 1.15 handle. The pair is now testing support at the 50% Fibonacci scale, and next major support is at the 1.27 level, which is the 61.8% Fibonacci retracement level. The market is likely to remain choppy and with poor economic numbers from the US, AUD is likely to gain a bit of momentum.
Theresa May’s troubles continue to pin back the Pound and the stats have provided little help. More swings on the cards later today.
Based on the early price action, the direction of the AUD/USD on Friday is likely to be determined by trader reaction to the 50% level at .7079 and the uptrending Gann angle at .7074.
Investing.com -- The dollar was edging higher against major European currencies early Friday in Europe after weak Chinese inflation data overnight reinforced concerns about global growth.
Investing.com - The yuan fell against the U.S. dollar on Friday in Asia after data showed China’s January Consumer Price Index and Producer Price Index both missed expectations.
The pair pulled back significantly during the Wednesday’s session, breaching the 1.13 level again to reach down towards the 1.1280 level. The pair is witnessing a lot of issues above the 1.13 level and until unless it breaks above 1.1350 level, the market will continue to struggle rallying higher. Going ahead, the pair will continue to consolidate, trading between 1.12 and 1.15 level. …Read MoreGBP/USD
Brexit and Trade talks are on the political agenda, while Germany’s GDP numbers and retail sales figures out of the U.S will be in focus on the data front.
Early in the trading session, China released January trade balance data that beat consensus expectations in both the Chinese Yuan (CNY) and U.S. Dollar (USD) terms. Looking at the CNY side, the trade balance figures came in at 271.42 billion compared to 395 billion CNY reported in December. As far as the USD side is concerned, the trade balance beat expectations of $33.50 billion surplus by coming in at $39.16 billion.
With the start of high-level trade talks between the United States and China, Asian market traders are taking a cautious approach to the stock market on Thursday. However, under the cautiousness, there is some optimism. China released better-than-expected January trade balance data early Thursday. The news seemed to have a positive effect on the Australian and New Zealand Dollars, but failed to add to this week’s strength in the major Asian stock markets.
Investing.com - The euro and the British pound fell to multi-week lows against the firmer U.S. dollar on Thursday as weak economic data out of the euro zone and concerns over Brexit weighed.
Investing.com - The Chinese yuan was little changed on Thursday in Asia after better-than-expected trade numbers for January, as analysts warned of the presence of business distortions due to national holidays and cyclical trends.
Based on the early price action, the direction of the AUD/USD on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at .7096 and the 50% level at .7079.
The Australian dollar rallied a bit during the trading session on Wednesday, trying to break out above the short term consolidation. Ultimately, this is a market that is trying to build a major support level in this vicinity, and it looks very likely that the buyers are going to try to press their luck.
The Euro fell initially during Thursday’s session but found enough support underneath, to bounce higher and break above the 1.13 level. The market is witnessing a lot of attention around the 1.13 level and at this point, it is likely that the pair will continue trying to reach towards the top of the overall consolidation area which is as high as 1.15 level. If the pair turns around, then it could unwind towards the 1.12 level. …Read MoreGBP/USD
Will inflation numbers deliver a boost for the Pound or the Dollar, or will they ease pressure on the respective central banks to make a move?
The RBNZ is widely expected to keep its benchmark interest rate unchanged at 1.75%. Furthermore, investors expect Governor Orr to issue a more “dovish” statement, joining the other major central banks with this assessment. Turning dovish will be a huge flip by the central bank since it sounded more upbeat in its last monetary policy statement released in November.
Investing.com - The NZD/USD pair advanced on Wednesday in Asia after a Reserve Bank of New Zealand (RBNZ) decision earlier in the day.
The Aussie dollar rallied a bit during the trading session on Tuesday, bouncing from the 0.7050 level, an area that begins significant support down to the 0.70 level. Beyond that, I also see massive support all the way down to the 0.68 level. We are at an area where a lot of value hunters continue to come back in.
The Euro had a bearish start of the week, as the pair had broken below the much supportive 1.13 level and has reached towards the 1.1280 level. With a lot of negativity around the European Union and loose monetary policy by ECB, the pair will continue to struggle and remain volatile.
The NZD/USD is under pressure because the Reserve Bank of New Zealand is expected to leave interest rates unchanged at its policy meeting on Wednesday, but may adopt a more dovish tone and cut growth forecasts.