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Kiwi under pressure on weak employment growth and lower dairy prices

Posted on August 5, 2015 at 11:20 am GMT

The New Zealand dollar touched a new 6-year low earlier on Wednesday, dropping to 0.6517 against the US dollar. A modest recovery in oil prices and an aussie rally provided only limited support to the kiwi as weak employment data and another drop in the global dairy price index weighed on the currency. Employment in the second quarter rose by just 0.3% in New Zealand, against expectations of a 0.5% rise. This was down on the first quarter’s 0.7% growth. [..]

Technical Analysis – Euro drops near 4-month low at 1.0860 versus US dollar

Posted on August 5, 2015 at 8:56 am GMT

The euro dropped near the 4-month low of 1.0807 during Wednesday’s trading, as expectations of an interest rate increase by the Fed in September increased. During the last 4 months the euro has been trading in the broad 1.08-1.1460 range. The 1.08 level was last tested on July 20. The technical for the euro are currently bearish, as the Tenkan-sen line is below the Kijun-sen line and the price action is below the cloud. The cloud however is rather thin [..]

Asian Session – Dollar gains on Fed official comments supporting September rate rise

Posted on August 5, 2015 at 8:20 am GMT

The dollar index rose back above 98 to near April highs in late US trading on Tuesday. The US currency was boosted by comments from Atlanta Fed President Dennis Lockhart who said in an interview for the Wall Street Journal that it would require significant deterioration of the US economy to convince him not to hike rates in September. The dollar had started Tuesday on a softer note and investors were unconvinced from better-than-expected factory orders on signs of underlying [..]

European Session – Oil rebound helps commodity currencies; dollar falls on factory orders

Posted on August 4, 2015 at 2:29 pm GMT

Oil prices rebounded on Tuesday after falling to a 6-month low on Monday as the global supply glut weighed on prices. Brent crude futures fell below $50 a barrel for the first time since January, but a steady recovery on Tuesday helped it climb by 1.6% to $50.30 in late European session. Other commodity prices such as copper and gold were boosted from the higher oil prices and a muted dollar. Copper prices were 1% higher at $237, while gold [..]

Aussie surges after RBA removes reference for further depreciation

Posted on August 4, 2015 at 10:58 am GMT

The Reserve Bank of Australia announced its latest policy meeting decision on Tuesday and kept its cash rate unchanged at the record low of 2.00%. Markets were not expecting another cut this month as the RBA assesses the impact of its previous two 0.25% cuts in February and May. It may also prefer to wait and see how the sharp depreciation of the Australian dollar feeds into import prices and boosts exports before taking further action. The Australian dollar has [..]

Technical Analysis – US dollar rises to 11-year high against loonie on oil price drop

Posted on August 4, 2015 at 9:01 am GMT

The US dollar rose to its highest in 11 years against its northern neighbor the Canadian dollar, after the price of oil crashed again to below 47 dollars a barrel. The US dollar had some trouble to convincingly break the psychologically important 1.30 level following initial attempts in mid-July. The 2009 high of 1.3063 was overcome on 31st July, which led to fresh 11-year peaks at 1.3175 – the highest since September of 2004. However, the RSI is signaling overbought [..]

Asian Session – Aussie higher on RBA statement; Oil rout pushes loonie to new lows

Posted on August 4, 2015 at 8:02 am GMT

The Reserve Bank of Australia kept its cash rate unchanged at 2% on Tuesday as was widely expected. After two quarter point cuts earlier this year, the RBA has toned down its easing bias and made no mention of the need for further depreciation of the Australian dollar in its statement. Instead, the Governor Glenn Stevens said that the currency is adjusting to the fall in commodity prices. The aussie jumped by over 1% from around 0.7288 to 0.7384 against [..]

European Session – Euro steady but dollar lower on manufacturing data

Posted on August 3, 2015 at 2:09 pm GMT

Major currencies were mostly steady on Monday and manufacturing data had limited impact. Earlier in the day, weak manufacturing PMI from China added more worries on the growth outlook in the world’s second largest economy. Eurozone final manufacturing PMI was slightly better-than-expected in July at 52.4, and an improvement on June’s 52.2. There was strong growth in the Netherlands, Spain, Italy and Austria. But France was the only other nation apart from Greece that had a reading below 50, which [..]

Eurozone and UK manufacturing PMI beat forecasts but Greek output plunges

Posted on August 3, 2015 at 12:07 pm GMT

The final manufacturing PMI for the Eurozone was revised slightly higher to 52.4 from the initial reading of 52.2 in July, versus estimates that it would be unchanged. The UK’s manufacturing PMI for July was also positive as it came in at 51.9, which was above estimates of 51.6. In the Eurozone, strong growth was recorded in Netherlands, Italy and Spain, which outperformed the rest of the euro area. Germany saw slightly slower pace of expansion compared to June but [..]

Technical Analysis – Dollar makes new all-time highs versus Turkish Lira

Posted on August 3, 2015 at 8:53 am GMT

The US dollar has been rallying against the Turkish lira, as the lira is an example of an emerging market currency that could be hit by interest rate hikes by the Federal Reserve. The dollar has recently been making all-time highs against the lira, with the latest record being around 2.80. The dollar has been climbing against the lira since October of 2008, when the pair was trading at 1.20. More recently, the indications for the dollar are bullish since [..]

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