News / Page 318

Forex News – Chinese manufacturing PMI shows China avoiding hard landing

Posted on June 2, 2014 at 1:08 pm GMT

The improvement in the National Bureau of Statistics manufacturing PMI for May was welcome news for most China watchers. The index rose to 50.8, compared to expectations of a rise to 50.7 and previous month’s reading of 50.4. It was the highest level for the index in 2014, although the improvement has been modest and the index remains too close to the 50 contraction / expansion dividing line for comfort. What the data does confirm though is that at least [..]

Technical Analysis – USDJPY bullish bias above cloud (4H)

Posted on June 2, 2014 at 9:14 am GMT

USDJPY recovered the 102 handle early on Monday. Short term technical indicators are bullish. Prices are above the Ichimoku cloud on the 4-hour chart and RSI is positive, all adding to the bullish market structure. The market is challenging the resistance area between 102.07 and 102.13. A break though these levels would open the way towards 102.35, May 13 high. Support on the 4-hour time-frame lies between 101.42 (May 29 low) and 101.46 (cloud bottom). Important support is found at [..]

Technical Analysis – AUDUSD falls into Ichimoku cloud

Posted on June 2, 2014 at 6:49 am GMT

AUDUSD fell back into the Ichimoku cloud today on worse – than – expected Australian building approvals. The daily Tenkan-Sen and Kijun-Sen remain negatively aligned, and the RSI turned negative, all adding to the overall bearish market structure. Prices have fallen just below the 23.6% Fibonacci retracement level of the upleg from 0.8659 (January 24 low) to 0.9460 (April 10 high). The scope is to target support at 0.9204, a level that has been tested a few times. Below this [..]

Asian Session – Aussie drops on weak building permits as Chinese data doesn’t help

Posted on June 2, 2014 at 6:21 am GMT

The week – and the month by the way – started with some minor losses by the Japanese yen, as continued positive risk sentiment and speculation that Japan’s pension funds would invest in foreign assets, drove down the currency. The week will feature some very important events, which should cause plenty of volatility. The dollar was struggling to overcome the 102 mark – a level that has been pushing the dollar back during the second half of May. The euro [..]

European Session – Dollar dips after soft US consumer spending data

Posted on May 30, 2014 at 1:28 pm GMT

Sterling was one of the biggest movers today, gaining against the dollar on the back of a report which showed that the Gfk consumer confidence index in the UK economy had improved to its highest level since 2005. Helping the pound was a broadly weaker dollar which was still being weighed by weaker than forecasted GDP numbers out of the US on Thursday. The greenback weakened again today after disappointing US personal spending and income data. Consumer spending in the [..]

Forex News – All eyes on the Eurozone as inflation data and ECB decision loom

Posted on May 30, 2014 at 1:09 pm GMT

Next week the primary focus will be on the Eurozone as major data as well as monetary policy decisions are expected that could move the euro significantly. There will also be a monetary policy decision out of the UK and some business confidence surveys that could move the pound. In the United States, as is usual at the beginning of each month, the ISM business sentiment surveys for manufacturing and services and the all-important nonfarm payrolls will attract a lot [..]

Forex News – Japanese inflation highest in 23 years as a result of tax hike

Posted on May 30, 2014 at 9:47 am GMT

Japanese inflation for April – as represented by the Core Nationwide Consumer Price Index – slightly exceeded expectations by coming in at 3.2% compared to 3.1% expected by economists. This gave the yen a boost, despite the prevailing positive risk sentiment which tends to depress the safe haven Japanese currency. Core prices exclude volatile fresh food items, but they include fuel and energy. Japan increased its sales tax from 5% to 8% in April, which according to the Bank of [..]

Technical Analysis – Gold in bearish trend

Posted on May 30, 2014 at 9:04 am GMT

Gold’s bearish trend is in place after having broken below three moving averages (50,100,200) on the daily chart. The 100dma has crossed below the 200dma, known as a death cross and this is a strong bearish signal. Prices have also broken below the 61.8% Fibonacci retracement level of the upleg from 1182.16 (December 31 low) to 1392.07 (March 17 high). Highlighting the bearish outlook are the negative technical indicators – RSI and stochastic. Further downside will target the 78.6% Fibonacci [..]

Technical Analysis – EURUSD bearish outlook

Posted on May 30, 2014 at 6:55 am GMT

EURUSD fell to a fresh 3-month low of 1.3585 on Thursday. Despite a slight rebound since then, the market looks bearish. Highlighting the bearish outlook are the negatively aligned tenkan-sen and kijun-sen and prices being below the Ichimoku cloud on the daily chart. RSI is in very bearish territory near 30. Prices broke below the 200-day moving average and are targeting the 61.38% Fibonacci retracement level of the 1.3293 (November low) to 1.3992 (May high). This will provide support at [..]

Asian Session – Yen gains on April inflation numbers as additional stimulus now unlikely

Posted on May 30, 2014 at 6:28 am GMT

The yen moved higher during Asian trading as Japan’s inflation rose in April, dampening speculation that the Bank of Japan would proceed with a second package of monetary stimulus. The dollar was pushed down to 101.57 against the yen, while the euro also dropped to 138.17 as attempts to drive the pair below 138 failed for now. Interestingly, the positive risk sentiment, which resulted in fresh all-time highs for the benchmark S&P 500 index overnight, did not hurt the safe [..]

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