Look for the downtrend to continue at a pace of .001 per day as long as the NZD/USD remains under this level. Crossing to the weak side of the downtrending Gann angle at .6509 will indicate the selling pressure is getting stronger. This could trigger an eventual break into .6465 and .6424.
Investing.com -- The dollar hit a fresh three-week high against its developed-market peers in early trading in Europe Tuesday, after Federal Reserve Chairman Jerome Powell indirectly argued against cutting interest rates in the near term due to the already-high level of corporate debt.
The RBA talks of rate cuts to pin back the Aussie Dollar as trade war jitters linger. Another quiet day on the stats leaves geopolitical risk in focus.
Investing.com - Prices of safe-haven gold slipped on Tuesday in Asia, while stock markets rebounded as traders cheered a reprieve in U.S.-China trade tensions after Washington temporarily eased restrictions on Chinese telecommunications giant Huawei.
Investing.com - The Australian dollar slipped against its U.S. counterpart on Tuesday in Asia after the Reserve Bank of Australia hinted that it would consider a case for a rate cut in June.
The Australian dollar rallied as much as 1% on Monday after the incumbent Liberal-National government retained power in a surprise election result defeating the favored Labor party.
The Safe-haven pair dropped from last week’s high amid positive Japanese data and plunging USD Index. Iran Foreign Minister commented on Trump’s tweets against Iran as “genocidal taunts”.
The gold market stabilized a bit during the trading session on Friday, reaching towards the $1275 level Overall. There is a significant amount of support underneath so therefore it’s not a huge surprise to see that we could continue to break down after a couple of negative sessions.
The US dollar when sideways against Japanese yen for the most part during the trading session on Monday. At this point, it looks like the market is trying to figure out what is going to do about the US/China trade situation.
The British pound stabilized a bit during the trading session on Monday, showing signs of indecision. We are hanging just above the 1.27 level, an area that I have pointed out in the past that is relatively important.
The British pound initially tried to rally against the Japanese yen during the trading session on Monday, but a slew of press releases from China of course has poured cold water on the rally.
The Euro went back and forth during trading on Monday, as we continue to question global growth and the entire US/China trade situation. Overall though, I think that this sets up some choppy trading in the short term.
After the conservatives held onto the PM position in Australia, the Australian dollar rallied quite significantly right at the open, gapping above to force more of a “risk on” move. This is especially impressive considering that the United States and China are chirping at each other yet again.
Based on the early price action, the support is a price cluster at $1273.30, $1272.70 and $1272.20. A sustained move over $1273.30 will indicate the presence of buyers. If this move generates enough upside momentum then look for a test of an uptrending Gann angle at $1279.30.
LONDON MARKETS Ryanair’s gloomy outlook for the coming year dragged on London markets Monday and fellow airlines, while banks were also weaker. A fresh bout of trade tensions also weighed on London and European equities.
European stocks stumbled Monday as trade tensions kicked off the week, dragging global markets lower, with technology and apparel makers under pressure on the continent. Italy’s FTSE MIB (IT:I945) plunged 2.8% amid increased political tensions, after Deputy Prime Minister Matteo Salvini led a rally Saturday ahead of European elections, vowing to take on the region’s mainstream leaders. In Germany, the DAX (DX:DAX)(DAX) declined 1.8% to 12,013.75, adding to its woes Friday when it swooned 0.6%.
Atlanta Fed President Raphael Bostic on Monday said he wasn't sure what direction the next interest-rate move would be, because there are risks that go in both directions. Speaking to CNBC, Bostic said trade policy uncertainty is keeping businesses on the sidelines with investment. He expects "solid growth" of 2.25%-2.5% this year but less than the 3% recorded last year. "In general, my view is as long as we don't see inflation running away, that would be the sign that our policy is basically at a neutral level. We can sustain that for a long period of time, and we don't have to move." Bostic won't have a vote on the Federal Open Market Committee until 2021.
Gold, silver, and platinum are trading down on the day despite the risk aversion environment in the market. Dollar strength is the reason.
Look for gold prices to pick up strength if the dollar, yields and stocks all weaken. If they all rise then sellers are likely to pressure gold prices. Gold is holding steady at 11:45 GMT, but should make a move once the key indicator line up in one direction. If they remain mixed, then look for the sideways trade to continue.
Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 1.1164 and the uptrending Gann angle at 1.1152.
The Greenback may fall in the near term from its top levels soon as US-Sino trade talks head in the wrong direction. The Canadian economy may benefit from the recent US Aluminum-Steel tariff cuts.
Fundstrat Global Advisors Managing Partner Tom Lee joins Yahoo Finance's Julie Hyman, Adam Shapiro, Brian Sozzi, and Andy Serwer to take a look into the likelihood of "massive risk-on rally" and a trade war-sparked recession.