News / Page 240

Asian Session – Aussie weak on GDP report, majors await key risk events

Posted on March 4, 2015 at 8:14 am GMT

The aussie returned a small portion of the previous day’s gains, after the country’s GDP report came in slightly lower-than-expectations. The Reserve Bank of Australia had decided to keep interest rates unchanged during its meeting the previous day. The positive contributors to Australian GDP are household spending, real estate and housing construction and exports. Business investment on the other hand is hurting because of the fading impact of the mining boom. The mining investment boom’s effect is mainly felt through [..]

Technical Analysis – EURJPY consolidates at critical juncture

Posted on March 4, 2015 at 7:36 am GMT

EURJPY has retraced 50% of the rally from 130.13 to 136.68. This Fibonacci retracement level at 133.40 provides support so far. A break below this would strengthen the bearish trend that has been in place since the December 2014 peak of 149.76. This would open the way to retest the 130.13 low. The market is below the Ichimoku cloud and this is highlighting the bearish bias. The intraday bias is neutral. The upward pointing kijun-sen line is indicative of short-term [..]

European Session – Loonie rallies on strong Canadian GDP

Posted on March 3, 2015 at 3:09 pm GMT

The Canadian dollar rallied strongly after data showed Canada’s economy expanded faster – than- expected in the fourth quarter. GDP rose at a 2.4% annualized pace from October to December. Tomorrow’s Bank of Canada rate decision is the next risk event for the loonie. USDCAD fell to a low of 1.2433 after the data today, down from a day’s high of 1.2530. The euro failed to sustain a rally against the dollar early in the European session. After a brief [..]

Forex News – RBA postpones rate cut for future; aussie rallies

Posted on March 3, 2015 at 11:11 am GMT

Having surprised with a quarter-point rate cut during its previous meeting on February 3, the RBA again delivered a surprise today by choosing to keep rates constant. Most analysts expected another rate that would lower the benchmark cash rate to 2.00%. Instead, the Bank’s policy board decided to keep rates constant at an all-time low of 2.25%. The accompanying statement did point out that further easing might be appropriate over the period ahead. Economic growth was below trend, domestic demand [..]

Asian Session – Aussie gains on Reserve Bank failure to raise rates; dollar eases

Posted on March 3, 2015 at 8:09 am GMT

The announcement of the monetary policy meeting of the Reserve Bank of Australia surprised markets as the decision was to keep interest rates unchanged at 2.25% rather than cutting them by another quarter point as expected by most economists. The Australian dollar managed to climb to 0.7835 from around 0.7770 against the US dollar prior to the announcement. However, the overall tone from the RBA suggested that a rate cut could take place in coming months as the economy was [..]

Technical Analysis – EURUSD downside bias towards 1.10

Posted on March 3, 2015 at 7:39 am GMT

EURUSD bias is back on the downside after a tumble to 1.1159 yesterday. It is capped below the 61.8% long term Fibonacci retracement level of 1.1210 of the upleg from 0.8225 (in 2000) to 1.6038 (in 2008). The January 26 low of 1.1096 now comes into focus. A bounce higher would be limited by resistance at the 21-day moving average at 1.1337. A break above 1.1680 would weaken the bearish bias. Overall the trend is bearish as prices have been [..]

European Session – Dollar surges above 120 yen as Nasdaq rallies to 15 year high

Posted on March 2, 2015 at 4:16 pm GMT

The Eurozone reported less deflation than expected today and this helped the single currency get relief to recover from recent weakness ahead of the ECB’s launch of its large scale bond buying program. The bank is expected to lay out more details of the new stimulus program at a news conference on Thursday following a policy meeting. With the flash CPI falling to minus 0.3%, better than the expected minus 0.6%, the data helped the euro bounce to a high [..]

Forex News – Improved Eurozone inflation and employment data overshadow disappointing PMI

Posted on March 2, 2015 at 3:19 pm GMT

The euro bounced higher on Monday despite the mixed Eurozone data. The Purchasing Managers Index (PMI) for manufacturing was disappointing but other than that, inflation and jobs data were better-than forecast. The headline manufacturing PMI was lackluster in February, coming in at 51.0, remaining unchanged from the prior month and just below a recent flash estimate of 51.1. A number above 50 signals expansion and below that contraction. However, looking at a country-by-country basis, there was a wide divergence between [..]

Asian Session – Dollar index registers fresh 11-year high, aussie drops on RBA cut expectation

Posted on March 2, 2015 at 8:05 am GMT

The US dollar was trading in a positive manner, as its trade-weighted index versus a basket of currencies hit a new 11-year high during today’s Asian trading. A cut in Chinese interest rates helped to buoy the dollar, as the yuan and other emerging Asian currencies dropped. The dollar was strong after data on Friday showed that US GDP growth for the 4th quarter was at 2.2% – less than the 2.6% originally estimated but higher than the 2.1% analysts’ [..]

Technical Analysis – AUDUSD looks to retest 5-1/2 year low

Posted on March 2, 2015 at 7:33 am GMT

AUDUSD continues its consolidation mode on the daily chart, trapped between the 5-1/2 year low of 0.7625 and 0.7950 – the 61.8 Fibonacci level of the 0.6008 to 1.1078 upleg. Momentum is bearish and the RSI has fallen back down. The near term bias is to the downside towards the 0.7625 low. A break below this would target the next 78.6 Fibonacci level at 0.7098. To the upside, a break above 0.7950 could see a further recovery to wards 0.8294. [..]

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