News / Page 224

Reserve Bank of Australia delivers rate cut but probably the last one for a while

Posted on May 5, 2015 at 9:58 am GMT

Today’s RBA meeting was keenly awaited as the consensus was that the central bank would cut interest rates after staying put during the previous month. In the event the consensus did get what it expected, as the bank cut the cash rate by 25 basis points to a record low of 2.00%. Since October of 2011, the RBA has cut rates by a total of 275 basis points. There was a period of stable rates between August 2013 and January 2015 [..]

Asian Session – Aussie drops on RBA cut but recovers after neutral tone in comments

Posted on May 5, 2015 at 7:10 am GMT

The Australian dollar was the key mover during today’s Asian session, after the Reserve Bank cut its key interest rate to 2.00% from 2.25% previously. This represents an all-time low for the country’s cash rate target. Although the rate cut was a negative for the aussie, as some analysts were expecting the RBA to keep rates constant, an inspection of the comments that accompanied the decision hinted that the central bank might not be ready to cut rates further. In [..]

Technical Analysis – GBPUSD extends retracement of recent rally

Posted on May 5, 2015 at 6:40 am GMT

GBPUSD fell lower on Monday and the correction of the rally from 1.4564 to 1.5497 looks set to extend lower. The pair has fallen below the 38.2% of this rally and support will likely be provided by the top of the daily Ichimoku cloud at 1.5090. This level held on Monday. Next support comes in at 1.5030 (50% Fibonacci and kijun-sen line). A move below this would encourage further weakness. RSI has fallen sharply and is close to the 50-point [..]

European Session – Euro falls below 1.1200 after Eurozone manufacturing PMI

Posted on May 4, 2015 at 2:14 pm GMT

The euro fell after the rate of expansion in Euro zone manufacturing growth dropped in April from March. Last week’s rally that took the single currency to almost 1.1300 fizzled out today on the PMI data and slipped below 1.1200. As many European markets reopened after the long weekend due to the May Day holiday on Friday, many investors took the opportunity to book profits after last week’s big gains. Data from Markit showed Eurozone manufacturing PMI printed a final [..]

Weak Chinese April Manufacturing PMI raises hopes of further stimulus

Posted on May 4, 2015 at 9:52 am GMT

The HSBC Manufacturing PMI for China out on Monday showed the PMI index continued to decline for the second consecutive month at 48.9 in April, which was significantly below estimates of 49.4. April’s figure was a faster contraction than March’s 49.6 and the weakest in a year. The main factor for the poor figure was lower domestic demand, which led to a fall in new business and in new orders, as well as in employment where manufacturing jobs fell for [..]

Asian Session – Aussie recovers ahead of RBA, euro stays strong before PMIs

Posted on May 4, 2015 at 7:07 am GMT

The Australian dollar was attracting a lot of attention today, after data out of China, Australia’s most important trading partner, was not performing as well as hoped for. The HSBC final manufacturing PMI for April came in at 48.9 versus 49.4 that was expected; dipping further into contraction territory. Data like this could lead to additional stimulus by the Chinese authorities, which has helped Chinese shares climb. The aussie found some support at the 78 cents level and managed to [..]

Technical analysis – EURUSD breaks above Ichimoku cloud

Posted on May 4, 2015 at 6:48 am GMT

EUR/USD is looking more bullish after breaking above the daily Ichimoku cloud last week. The pair remains outside the cloud for a third day. Price peaked at 1.1289 after finding resistance at the 23.6% Fibonacci retracement level of the downleg from the May 2014 high of 1.3992 to the March low of 1.0461. Prices are currently just below the key 1.1200 level but the intraday bias remains bullish as the RSI is in bullish territory above 50 and the tenkan-sen [..]

Busy week ahead includes UK elections, nonfarm payrolls and RBA

Posted on May 1, 2015 at 9:58 am GMT

Next week will be an event-filled week, with the UK general elections, Greece’s debt payments to the IMF and US nonfarm payrolls all likely to grab the market’s attention. On Thursday, the much awaited UK parliamentary elections will be held. The pound has been coming under increasing pressure due to a lot of uncertainty surrounding this event as the race has been quite close, with no clear leader in the polls, although the Conservatives only recently managed to gain some [..]

Asian Session – Dollar firm after 15-year low US jobless claims, euro lifted on hopes of Greek deal

Posted on May 1, 2015 at 7:19 am GMT

The greenback was buoyed by upbeat US initial jobless claims numbers which were the lowest in over 15 years. Data on Thursday showed that initial US unemployment claims dropped to the lowest level since 2000 in the week ending April 25. Claims fell 34,000 to a seasonally adjusted 262,000 claims, versus forecast for a decline to 290,000. Dollar gains were significant immediately after the data, surging almost 100 pips against the yen to a high of 119.88. After a slight [..]

Technical Analysis – EURGBP back to the upside

Posted on May 1, 2015 at 6:36 am GMT

EUR/GBP intra-day bias is back to the upside after prices rose above trend line resistance and cleared a key resistance zone between 0.7241 and 0.7249. Looking at the daily chart, the pair has found support at 0.7296 at the 23.6% Fibonacci retracement level of the upleg from the March 11 low of 0.7013 to the March 25 high of 0.7384. RSI is in bullish territory above 50 but we would need to see a break above the March 25 high [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

News

XM Live Chat