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European Session – Dollar rises on strong durable goods orders, euro down on Draghi comments

Posted on April 24, 2014 at 1:38 pm GMT

The euro fell against most counterparts after ECB President Mario Draghi’s comments which suggested the central bank would be ready to embark on quantitative easing if the Eurozone inflation outlook worsens. Speaking at a conference in Amsterdam today, Draghi also remarked that a strong euro could trigger policy action as well. The euro erased gains versus the dollar made after German Ifo data which showed an improvement in the business climate. The euro fell 0.20% to 1.3792, after having hit [..]

Forex News – Reserve Bank of New Zealand hikes rate to 3%, could raise more

Posted on April 24, 2014 at 9:44 am GMT

[caption id="attachment_16068" align="alignnone" width="555"] (Source: Thomson Reuters)[/caption] The Reserve Bank of New Zealand increased its key Central Bank Interest Rate on Thursday, bringing it up to 3%. It was the second month in a row that the country’s central bank hikes rates by a quarter-point, following the March 13 increase to 2.75% from 2.50%. The decision was well expected but the accompanying statement seemed to indicate that the bank would probably continue raising interest rates. The RBNZ acknowledged that dairy [..]

Technical Analysis – USDJPY waiting for direction, supported by cloud top

Posted on April 24, 2014 at 9:22 am GMT

USDJPY has found support from the Ichimoku cloud top on the 4-hour chart. The pair is consolidating around 102.40, which is the 23.6% Fibonacci retracement of the upleg from 101.31 (April 11 low) to 102.71 (April 22 high). The tenkan-sen and kijun-sen lines are converging which indicates indecisive direction. RSI has popped just below 50 which shows some weaker momentum in the recent rally from April 11 – 22. However, with the market remaining above the cloud, this adds to [..]

Technical Analysis – AUDNZD declines for second day

Posted on April 24, 2014 at 7:44 am GMT

AUDNZD fell for a second day after being pushed lower by a stronger kiwi following the RBNZ rate hike today. After failing to breach 1.0910 following several tests of this strong resistance level, the pair fell to 1.0759, finding support by the 100-day moving average and the 38.2% Fibonacci retracement of the March to April upleg from 1.0535 to 1.0910. AUDNZD is targeting the support area at 1.0735 (50-day moving average) and 1.0725 (50.00% Fibonacci retracement level). A further move [..]

Asian Session – New Zealand dollar rallies following RBNZ rate rise and hawkish tone

Posted on April 24, 2014 at 6:28 am GMT

The dollar found itself under some slight pressure in today’s trading, but the euro and the yen failed to capitalize more fully on the dollar’s weakness. The kiwi was the star performer of today’s Asian session, as the Reserve Bank of New Zealand hiked interest rates to 3% from 2.75%. Furthermore, the bank indicated that additional interest rate hikes could be undertaken in the future. This drove the New Zealand dollar up 0.4% against the US dollar to trade at [..]

European Session – Euro remains above 1.38 buoyed by Eurozone PMIs

Posted on April 23, 2014 at 1:34 pm GMT

The euro rallied against the dollar after better-than-expected Eurozone flash PMI data for this month which gave encouraging signs about the recovery prospects in the region. The survey showed the Euro area started the second quarter on its strongest footing in nearly three years while on an individual country level, the PMIs were diverging. French PMIs disappointed while both German manufacturing and services PMIs increased more-than-forecast. The euro gained 0.17% versus the dollar to trade at 1.3840. ECB President Mario [..]

Forex News – Eurozone business confidence surveys beat expectations as economy’s “modest recovery” gains hold

Posted on April 23, 2014 at 12:22 pm GMT

[caption id="attachment_16037" align="alignnone" width="555"] (Source: Markit, Thomson Reuters)[/caption] The April flash Markit Purchasing Manager Index surveys were released today and they showed broadly positive developments for the Eurozone’s economic recovery. The French numbers, which were released first, missed expectations both for services and for manufacturing. The miss followed last month’s substantial increase that propelled the indices above 50. There was a pullback during April according to today’s release but the indices still managed to remain above 50. 50.9 was the [..]

Technical Analysis – AUDUSD bearish bias

Posted on April 23, 2014 at 9:07 am GMT

AUDUSD is notably lower today, dropping around 1.0% after weaker than expected Australian inflation data. The violation of the 0.9357support level today accelerated a decline to 0.9269 where the price currently stands. Further downside on the 4-hour chart would target support at 0.9252 and below this at 0.9204. Resistance is strong at 0.9314, 0.9357 and 0.9400. RSI is indicating downside momentum and has fallen below 50 while the stochastic is approaching 20, near oversold territory. Overall, the near-term bias is [..]

Technical Analysis – GBPUSD maintains bullish bias

Posted on April 23, 2014 at 7:27 am GMT

GBPUSD has broken back above the key 1.6800 level and has maintained its upside momentum. The market is trading above the 50 and 100-day moving averages, which is a bullish signal. The pair rallied strongly from the March 24 low of 1.6468 to the April 17 high at 1.6841 and has since been consolidating around this level, currently hugging 1.6800. The RSI found resistance at the 70 level and is pointing downwards, suggesting for some weakening in the upside momentum. [..]

Asian Session – Australian dollar backs down after tame inflation numbers

Posted on April 23, 2014 at 6:33 am GMT

Currency majors were little changed during Wednesday’s Asian trading, with the dollar backing down slightly against the yen at 102.55 and the euro also gaining somewhat against the greenback to 1.3816. In China, the news was that the HSBC Markit flash Manufacturing PMI rose to 48.3 in April compared to 48.0 in March. This was good news on the one hand as it does represent an improvement. On the other hand, the index stayed below 50 for the fourth [..]

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