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Technical Analysis – NZDUSD retracing some gains it made this year

Posted on October 6, 2016 at 7:50 am GMT

NZDUSD has staged a big rally so far this year as it rallied from the January 20 low of 0.6346 all the way to the early September high of 07484 – a 17.9% move. After the yen, the kiwi is the best-performing developed country currency versus the dollar this year. Following the early September high of 0.7484, the pair has corrected somewhat sharply to reach the present 0.7150 level. It has thus violated the 50-day moving average in the process (currently at [..]

Asian Session – US dollar builds on gains following strong non-manufacturing ISM

Posted on October 6, 2016 at 6:56 am GMT

The US dollar continued to be strong in today’s Asian session – keeping and in some cases extending the previous day’s gains on a big reversal by the ISM non-manufacturing survey. The dollar appeared to be strong against all other majors – the euro, the yen, the pound and the Australian dollar. Regarding the ISM report, whereas August’s (previous month) number shocked by coming in at 51.4 from July’s 55.5, in September the index rebounded to 57.1, far exceeding expectations of [..]

European Session – Dollar surges on strong ISM but pound remains under pressure; Oil climbs to multi-month highs

Posted on October 5, 2016 at 3:05 pm GMT

Risk appetite remained subdued in Wednesday’s European session as reports that the ECB has begun informal discussions on how it will rein in its asset purchases when the time comes to end the program weighed on market sentiment. The story, which was reported by Bloomberg late on Tuesday, unnerved currency and equity markets. The euro, which had been pushed below 1.12 dollars by the bullish greenback, jumped over 100 pips to 1.1238 in US trading yesterday. It managed to hold [..]

Strong UK PMIs fail to lift pound; BoE’s Broadbent says fall is “orderly”

Posted on October 5, 2016 at 11:35 am GMT

UK services PMI out today rounded up another set of stronger-than-expected monthly PMI figures since the post-Brexit rebound got underway in August. Services growth in the UK eased slightly in September compared to August with the Markit/CIPS services PMI declining slightly from 52.9 to 52.6. However, the figure was above forecasts of 52.0 and is further evidence that the British economy is proving resilient amid the Brexit uncertainty. Today’s PMI reading for the service sector follows better-than-expected figures for the [..]

Technical Analysis – GBPAUD at 3-year low; possibly oversold in short-run

Posted on October 5, 2016 at 7:58 am GMT

All sterling crosses have attracted a lot of attention since Brexit-induced volatility has led the pound hit multi-year lows against various currencies. In this circumstance, against the aussie the pound is trading at 3-year low. 1.67 had provided some support for the pound back in mid-August but when this level gave way, the pair moved to 1.66. The longer-term picture is decidedly bearish, as both the 200-day and 50-day moving averages are negatively aligned. However, in the short-run, sterling could [..]

Asian Session – Euro jumps on ECB taper story; pound, gold struggle to find support

Posted on October 5, 2016 at 7:50 am GMT

The euro made a comeback against a resurgent US dollar following a story from Bloomberg that the European Central Bank was considering gradually reducing its bond purchases before the program ends. The British pound and gold on the other hand were struggling to find support as they plunged to fresh lows. The US dollar was doing well generally – with the possible exception of the euro – after Richmond Fed President Jeffrey Lacker sounded a hawkish note. Lacker said there [..]

European Session – Pound hits new 31-year low while dollar extends gains

Posted on October 4, 2016 at 3:04 pm GMT

The British pound continued to come under pressure in European trading on Tuesday, hitting the lowest since June 1985 on mounting fears that the UK is heading for a ‘hard Brexit’. Sterling tumbled to a fresh 31-year low of 1.2735 dollars in afternoon European trading, extending yesterday’s sharp losses. The weaker pound boosted shares in London as a more competitive exchange rate appeared to outweigh concerns about British firms losing access to the single market. The FTSE 100 index soared [..]

RBA maintains neutral bias but aussie pressured from strong dollar

Posted on October 4, 2016 at 11:46 am GMT

The Reserve Bank of Australia decided to leave its cash rate unchanged at 1.50% at its policy meeting today as the new Governor, Phillip Lowe chaired his first meeting. No move was expected by the markets but analysts were hoping for some indication of future policy in the RBA’s decision statement. After the August cut of 25bps that took rates to the current record low of 1.50%, markets were expecting one more cut in 2016, with November seen as the [..]

Technical Analysis – Japan 225 stock index looking bullish short-term

Posted on October 4, 2016 at 7:40 am GMT

The Japanese stock index is looking positive in the short-term according to the Ichimoku analysis. Following the steep drops in the first two months of the year, the index has traded broadly in a range between the 14775 and 17760 levels. The more recent high was 17160 in early September. The current price is 16760, which is above the cloud and both the Tenkan-sen and Kijun-sen lines. These are all positive indications. If the Tenkan-sen line (red) manages to cross [..]

Asian Session – Dollar rebounds on strong ISM; pound makes new low while RBA holds rates

Posted on October 4, 2016 at 7:19 am GMT

The US dollar was up during Tuesday’s Asian session as it managed to push euro / dollar below 1.12 and dollar / yen rose above 102 on follow-through buying after the previous day’s strong ISM manufacturing PMI for the United States. ISM manufacturing PMI rose to 51.5 from the previous month’s surprising 49.4 reading, which had left the index in contraction territory. The report contained a particularly strong new orders component, while the employment and prices sub-components were also better-than-expected. [..]

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