FX Daily Outlook|03-05-16
Posted on May 3, 2016 at 8:57 am GMT[..]
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Asian Session – Aussie drops after RBA rate cut; US dollar under pressure
Posted on May 3, 2016 at 8:02 am GMTThe Reserve Bank of Australia surprised markets with a rate cut while the US dollar continued to drop to multi-month lows against other major currencies during Tuesday’s Asian trading. The aussie dropped more than 1 cent versus the US dollar following the RBA’s announcement; from the 77 cents’ level down to below 76. The previous week’s weaker-than-expected inflation rate for the first quarter played a key part in the bank’s decision, as persistently low inflation in previous months as well [..]
European Session – Gold, oil hit fresh 2016 highs as dollar continues to slide
Posted on April 29, 2016 at 3:20 pm GMTCommodities were bolstered on Friday from the weakening US dollar as soft consumer spending and inflation data reinforced expectations that the Federal Reserve will not be required to raise interest rates anytime soon. The dollar index, which measures the value of the US currency against a basket of currencies, hit an 8-month low and was down 0.7% at 93.09 in late European session. This helped crude oil to climb to fresh yearly highs, with US crude hitting $46.78 a barrel [..]
Asian Session – Risk-on drives commodity currencies higher but dollar muted
Posted on April 19, 2016 at 8:13 am GMTCommodity currencies extended yesterday’s gains into Tuesday’s Asian session as oil prices recouped most of their losses following the failure of talks on Sunday by major producers to limit supply. US oil futures recovered from Monday’s low of $37.59 a barrel to climb to $40.34 a barrel in Asian trading today. The Australian dollar rose to a 10-month high of 0.7802, while the New Zealand dollar also climbed to its highest since June 2015 to break above the 0.70 level [..]
Asian currencies tumble after Singapore central bank eases policy
Posted on April 14, 2016 at 12:51 pm GMTAsian currencies were shaken on Thursday after the Monetary Authority of Singapore (MAS), Singapore’s central bank, unexpectedly eased its currency policy for the Singapore dollar. Unlike other central banks, the MAS sets monetary policy by managing the Singapore dollar’s exchange rate against the country’s main trading partners due to the economy’s dependency on global trade. Worried about the outlook for global growth, the MAS set the rate of appreciation of the Singapore dollar’s nominal effective exchange rate (NEER) policy band [..]
Risk helped by Chinese markets’ return from holidays in calm mood
Posted on February 16, 2016 at 2:54 pm GMTThe first two trading days of this week have been marked by the return of some positive risk appetite. While one can cite many factors for this – bargain-hunting, positive US economic statistics the previous week, promises of more stimulus, a rebounding oil price – one factor probably stands out – China. The reopening of markets in China following the Lunar New Year holidays was surprisingly uneventful given the volatility of the previous week when the country’s markets were closed. [..]
Technical Analysis – AUDUSD consolidates in broad range following downtrend
Posted on December 21, 2015 at 9:11 am GMTThe aussie against the US dollar has been trading in a range for the past 5 months or so between 69 cents and 74 cents. Currently it is around the middle of this range at 0.7170. Longer-term, the aussie remains firmly in a downtrend since the 200-day average has been above price action for about 15 months. The failure of the aussie to break above 0.7385 during two attempts in mid-October and early December, should be worrying to bulls. Other [..]
Australian dollar firms after RBA stands pat despite easing bias
Posted on November 3, 2015 at 10:14 am GMTThe Reserve Bank of Australia (RBA) kept its cash rate unchanged at its November meeting on Tuesday. The decision was widely expected by economists as the domestic economy has remained resilient in the face of ongoing slowdown in China, and the weaker Australian dollar has helped offset some of the impact of falling commodity prices. Interest rates have now been kept at 2.0% since the May meeting when rates were last cut. It followed another cut in February, bringing the [..]
Turkish lira rallies after Erdogan’s AKP win in snap elections
Posted on November 2, 2015 at 2:57 pm GMTThe Turkish lira rallied on Monday to the highest level since August 11 after President Tayyip Erdogan’s AK party won a majority in Sunday’s elections, gaining 49.4% of the votes. Snap elections were called in August after the Prime Minister Ahmet Davutoglu failed to form a coalition with the opposition parties, MHP and CHP. The AK party lost its majority that it has enjoyed since 2002 in the June elections. The loss of the AKP’s majority had raised hopes for [..]
Central bank meetings lift some of the fog heading into year-end
Posted on October 30, 2015 at 12:14 pm GMTThe meetings of the European Central Bank, the Federal Reserve and the Bank of Japan during the past couple of weeks have managed to clear up some of the uncertainty regarding the next steps in monetary policy from the world’s major central banks. Firstly, starting with the ECB which met the previous week, one should expect some sort of extension or expansion of its current Quantitative Easing program during the next meeting in December and possibly a lowering of the [..]
