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Technical Analysis – NZDUSD rallies to 11-month high

Posted on March 13, 2014 at 8:08 am GMT

NZDUSD is in a strong uptrend, with sights set on a test of next key resistance at 0.8600. The pair rallied strongly following the RBNZ rate announcement, bouncing from a pre-data low of 0.8437 to 0.8575 in the early Euroepan session. Bullish momentum is strong, with prices riding the upper Bollinger Band and RSI rising above 70. However the stochastics indicator is in overbought territory, which could warn that a short term correction is due. Dips would lead to immediate [..]

Asian Session – Dollar main loser in busy Asian trading

Posted on March 13, 2014 at 7:39 am GMT

There was a flurry of developments in financial markets during Thursday’s Asian trading and the overall effect was to push the dollar lower while safe haven currencies gained. The euro made fresh 2 ½ year highs at 1.3948, with the 1.40 level now looking increasingly likely if the euro continues to rally. According to traders the euro was still capitalizing on the ECB’s refusal to deliver any monetary stimulus during its March 6 meeting. The yen was also stronger following [..]

European Session – Euro rallies after German finance minister says rates too low

Posted on March 12, 2014 at 2:42 pm GMT

News of China’s first bond default dampened risk sentiment in markets today, including currencies. The broad risk-off tone led to a demand of safe haven assets which helped strengthen the yen. The only economic data of note today was Eurozone industrial output. The data was mixed and did not really impact the euro. On an annual basis, industrial output rose faster than expected in January at 2.1% while on a month-to-month basis, output fell 0.2% in January from December, contrary [..]

Forex News – China’s slowing growth fears takes toll on copper prices and AUD

Posted on March 12, 2014 at 11:54 am GMT

Concerns are growing about China’s growth this year after the nation’s trade balance data for February were released earlier this week, being the latest in a series of poor data releases recently. Manufacturing PMIs have been no better for months. The slowing pace of growth in the world’s second largest economy has taken a toll on copper prices, the reason being that China is a major consumer of copper. Also, the commodity is being used as collateral to raise financing [..]

Technical Analysis – G old rallies to 6-month high

Posted on March 12, 2014 at 8:03 am GMT

Prices for the precious metal made a strong rebound in the past two days, gaining more than $30 to reach a new 6-month high. Prices bounced off key support at 1327.94 on March 10 and moved higher by breaking two key resistance levels at 1337.11 (61.8% Fibonacci of August 25 – December 29) and 1354.63 (March 3 high) before testing 1361.60 (October 28 high). An analysis of the 4-hour chart showed the bullish trend remains intact as shown by the [..]

Asian Session – Yen gains on negative risk sentiment as Chinese slowdown feared

Posted on March 12, 2014 at 7:48 am GMT

The yen was strong during Wednesday’s Asian trading, as fears about Chinese growth as well as geopolitical uncertainty in Ukraine were the main themes depressing sentiment. This was in the absence of significant economic data from other major economies. The dollar dropped below the 103 mark against the yen at 102.9, whereas euro / yen also backed down to 142.57. Euro / dollar was range-bound during the Asian session between 1.3850 and 1.3860, as the pair did not manage to [..]

European Session – Euro drifts lower after ECB’s Constancio suggests rates to remain low

Posted on March 11, 2014 at 2:42 pm GMT

Currency markets were directionless in a quiet European session. Most major currencies, like the euro and the sterling, drifted lower against the dollar, while the yen was steady after the Bank of Japan left policy unchanged. The euro moved further off a recent 2-1/2 year high against the dollar after being weighed down by comments from senior European Central Bank (ECB) policymaker Vitor Constancio who signaled that rates are set to remain accommodative for some time to come. He suggested [..]

Forex News – BoJ optimistic about export growth

Posted on March 11, 2014 at 12:21 pm GMT

The Bank of Japan concluded its two-day monthly policy meeting on Tuesday with an announcement that it retained its policy easing program, meaning it will continue to expand its monetary base by 60tln – 70tln yen annually. Based on a press conference by BoJ Governor Haruhiko Kuroda, the central bank remains optimistic on the Japanese economic outlook and he did not signal any chances of easing in April. This is surprising considering Japan recently posted a record current account deficit [..]

Technical Analysis – EURJPY bullish above cloud

Posted on March 11, 2014 at 7:53 am GMT

EURJPY maintains its bullish long term outlook. The pair is currently trading well above the daily Ichimoku cloud and above the Tenkan – Sen and Kijun –Sen lines, which indicates more upside potential. Another indicator, the MACD, is also giving a bullish signal, as it has just crossed above the zero line. A break of immediate resistance at 143.77 (high of March 7) would accelerate a move towards 145.65 (high of December 27). The stochastic indicator, while bullish, is currently [..]

Asian Session – Majors range bound as BOJ leaves policy unchanged

Posted on March 11, 2014 at 7:30 am GMT

The Bank of Japan decided to keep its ultra-easy monetary policy unchanged on Tuesday but decided to downgrade its view about exports while upgrading the bank’s view on capital expenditure and industrial production. Exports have so far not benefitted as much as expected from the weaker yen, as the announcement of downwardly revised fourth quarter GDP growth showed. Most Asian stock markets were flat to positive following a lackluster session on Wall Street the previous day. The yen was steady [..]

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