|Day's Range||0.655 - 0.656|
|52 Week Range||0.6426 - 0.7061|
Traders should note that the reversals to the upside are being fueled by position-squaring and short-covering, and not a change in policy by the RBA and RBNZ. Therefore, the rally is likely to be short-lived and likely to last until investors make the necessary adjustments to the possibility of a Fed rate hike.
Based on yesterday’s closing price reversal bottom and close at .6522, the direction of the NZD/USD on Friday is likely to be determined by trader reaction to yesterday’s high at .6527.
Brexit and EU Elections along with UK retail sales figures to influence the GBP, with durable goods orders out of the U.S also in focus.
Based on the early trade, the direction of the NZD/USD the rest of the session will be determined by trader reaction to the long-term downtrending Gann angle at .6489. The main trend is down according to the daily swing chart. The nearest downside targets are the October 16, 2018 main bottom at .6465 and the October 8, 2018 main bottom at .6424.
Investing.com -- The dollar was higher across the board in early trade in Europe Wednesday, as the reportedly imminent exit of British Prime Minister Theresa May over the Brexit shambles depressed the pound and made for an awkward backdrop to European parliament elections that start today.
UK Inflation and European politics to whipsaw the Pound ahead of the FED monetary policy meeting minutes later today.
Look for the downtrend to continue at a pace of .001 per day as long as the NZD/USD remains under this level. Crossing to the weak side of the downtrending Gann angle at .6509 will indicate the selling pressure is getting stronger. This could trigger an eventual break into .6465 and .6424.
Investing.com -- The dollar hit a fresh three-week high against its developed-market peers in early trading in Europe Tuesday, after Federal Reserve Chairman Jerome Powell indirectly argued against cutting interest rates in the near term due to the already-high level of corporate debt.
The RBA talks of rate cuts to pin back the Aussie Dollar as trade war jitters linger. Another quiet day on the stats leaves geopolitical risk in focus.
It’s a mixed start to the day, support for the Aussie Dollar kicked in, while the EUR and the Pound could be under pressure. EU elections loom…
Based on last week’s price action and the prolonged move down in terms of price and time, the direction of the NZD/USD this week is likely to be determined by trader reaction to last week’s low at .6513. Taking out .6513 then recovering last week’s close at .6514 will put the NZD/USD in a position to form a potentially bullish closing price reversal bottom.
Over the short-run, the AUD/USD could get a boost from the election results, but gains are likely to be limited and prices could fall further because of the weakening economy and the expected rate cut.
Asian markets are worried about the increase in anti-American rhetoric in the Chinese media against the background of escalating trade conflicts. However, this hurts Chinese markets, which have re-emerged to decline and are losing more than 1.2%.
A relatively quiet economic calendar leaves Brexit and trade war chatter in focus. Is the trade spat about to get worse and can Theresa May deliver?
The Aussie Dollar touches sub-$0.69 as more stats disappoint. Chatter on trade and a sparse economic calendar will be in focus today.
Last week, RBA Governor Philip Lowe made it clear a further improvement in the labor market was needed to get the economy rolling again toward its full potential.
Investing.com -- The dollar was higher in early trading in Europe on Wednesday, supported by comments from senior Federal Reserve officials playing down the likelihood of interest rate cuts, and by a fresh bout of safe-haven buying on geopolitical tensions.
Economic data out of China set the tone early. How much of an impact has the trade war really had on both economies? Are we about to find out?
Look for further pressure on the AUD/USD if the Wage Price Index comes in below the 0.6% estimate. This would be the first sign of weakness in the labor market this week. The next signs of weakness could come in Thursday’s Employment Change and Unemployment Rate reports.
Based on yesterday’s close at .6574 and the early price action, the direction of the NZD/USD on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at .6564.
A sense of calm in the forex markets early on as the U.S futures point to a positive open in the equity markets. It could all change in a second…
Investing.com - The Chinese yuan rebounded on Tuesday in Asia following reports that China’s state-backed funds, also known as the “National Team,”injected cash into the market in an attempt to support local stocks and currency.
Last week, RBA Governor Philip Lowe made it clear a further improvement in the labor market was needed to get the economy rolling again toward its full potential. Conditions are expected to worsen by the June employment rate, due to be released in late July, making the first cut an obvious decision for the August meeting.”