|Day's Range||0.684 - 0.686|
|52 Week Range||0.6792 - 0.7559|
U.S. Consumer inflation is expected to show a monthly rise of 0.4%, up from 0.1%. This number won’t affect the Fed’s December interest rate decision, but it could have an influence on the number of rate hikes in 2018.
The kiwi dollar is currently pressing against the 0.68 level underneath, which is a major support level. A breakdown below there should send the market down to the 0.66 handle.
The Australian Dollar plunged to its lowest level since June after a big miss on the trade surplus. The news highlighted the economy’s vulnerability to lower iron ore prices.
Brexit trouble, a possible U.S government shut down, tax reforms and Merkel’s attempts to form a coalition government are all factors outside of the macroeconomic data for the markets to consider through the day. And let’s not forget about the ongoing investigations into the Trump election campaign.
Today’s sell-off has erased all of yesterday’s gains, indicating that investors have a few doubts about the RBA’s forecast. The Australian Bureau of Statistics data showed Australia’s economy grew 2.8 percent over the year. The RBA is forecasting 3.0 percent growth.
Hawkish RBA lifts the AUD and creates a nice trading opportunity on the AUDUSD. First of all, we do have a bounce from the up trendline. Next are the correction equality pattern and the iH&S formation. What is more, the price came back above the 38,2% Fibonacci and used that as the closest support. All that is very positive for the AUDUSD in the mid-term.
The RBA said Tuesday it is holding its benchmark cash rate unchanged at 1.5 percent. This news was widely expected. The central bank has kept rates at this level since August 2016.
The RBA holds on rates, while also showing little sign of a shift in policy, with stats out of Europe and the U.S likely to be overshadowed by Brexit chatter and noise from Capitol Hill.
Past few months for the NZDUSD were pretty rough. Since the tops in July, the price declined almost 800 pips and in the middle of November made the new yearly lows. Since that, we are slowly recovering and actually, we can see a light in the tunnel. Luckily it will not be a train and the buyers will not get smashed again.NZDUSD Daily
The Australian Dollar posted a two-sided trade last week before closing lower. The Aussie was pressured by the divergence between the hawkish U.S. Federal Reserve and the dovish Reserve Bank of Australia. The New Zealand Dollar was helped by technically oversold conditions and an upbeat RBNZ Financial Stability Report and friendly remarks from RBNZ Governor Spencer.
The U.S. Dollar finished higher against a basket of currencies last week but most of the gains were attributed to a weaker Euro which accounts for a little more than 50% of the dollar index. The greenback rose against the Japanese Yen and the Australian Dollar, but lost ground to the New Zealand Dollar and the British Pound. The dollar started the week under pressure due to a strong Euro and cautiousness ahead of Congressional testimonies of Fed Chair nominee Jerome Powell and current Fed Chair Janet Yellen.
The New Zealand dollar went back and forth during the week, going as low as the 0.6 a region, but then broke above the 0.69 level. More volatility for what is one of the most volatility driven currencies.
The New Zealand dollar continues to be very noisy, but perhaps may be trying to form a short-term bottom. In general, I remain very skeptical.
A strong resistance in place at the 0.6951 level in the NZD/USD and intraday bias turned bearish. At this point, a deeper fall is mildly in favor as long as 0.6884 minor resistance holds below the 0.6884 will target the 0.6797 support level. A decisive break there will affirm the bearish case of medium term reversal.
The New Zealand dollar has been very noisy during the trading session on Wednesday, breaking well above the 0.69 level again, but forming a perfect shooting star on the hourly chart to roll over and break down below that level again.
Investing.com - The dollar slipped down on Wednesday as Bitcoin surged to over $11,000 and sterling recovered against the greenback.The losses were offset by strong U.S. third-quarter economic growth data and hope that the tax reform bill will be passed by the end of the year.On Tuesday, the Senate Budget Committee approved the Senate's tax plan, bringing it closer to a floor vote. Doubts remain however on whether Congress can pass the bill before the end of the year.Meanwhile U.S. gross domestic product expanded by 3.3% in the third quarter, while pending new homes rose 3.5% in October. ...
The Australian and New Zealand Dollars are trading mixed as we approach the U.S. opening. Both started lower, but the New Zealand Dollar turned about to turn higher for the session. At 1145 GMT, the AUD/USD is trading .7575, down 0.0019 or -0.26% and the NZD/USD is at .6908, up 0.0010 or +0.15%.
The New Zealand dollar went back and forth during the trading session on Tuesday, as we continue to hang about the 0.6925 level.
If the pullback extends beneath 1.3240, the 1.3200 and the 1.3175 may offer intermediate halts during the pair’s dip towards testing 1.3120 support-line. Should sellers keep fetching the prices southwards after conquering the 1.3120 TL, a bit broader ascending trend-line, at 1.3035 now, may challenge the bears, if not then the 1.2950-45 area can reappear on the chart. Meanwhile, pair’s D1 close above 1.3340 can be considered as a trigger for its advances in direction to 1.3440 and then to the 1.3460, break of which may enable buyers to aim for 1.3550 and the 1.3600 round-figure.
The Australian and New Zealand Dollars are trading mixed shortly before the U.S. opening. Concerns over Federal Reserve policy and U.S. tax reform are helping to pressure the Aussie. At 1020 GMT, the AUD/USD is trading .7593, down 0.0008 or -0.10% and the NZD/USD is at .6919, up 0.0008 or +0.11%.
The negative sentiment towards Chinese stocks also weighed on the Hang Seng, which was down 0.61% at the time of writing, with oil stocks also joining the heavy losers on the day, as crude oil retreats ahead of Thursday’s OPEC meeting. Thrown into the mix will be the BoE’s release of the bank stress test results, with Carney discussing the results and presenting recommendations following the release.
The New Zealand dollar shot higher during the day on Monday, slicing through the 0.69 handle. Because of this, volatility is to be expected and of course we have the usual issues when it comes to liquidity, and beyond that, issues with any type of trouble in the commodity markets.
The Australian and New Zealand Dollars have recovered from early session weakness and are now trading higher, resuming the rallies that began last week with the release of the dovish Fed minutes. At 1019 GMT, the AUD/USD is trading .7642, up 0.0030 or +0.39% and the NZD/USD is at .6901, up 0.0035 or +0.51%. The Aussie and the Kiwi are being supported by a weaker U.S. Dollar.
In the bigger picture, the current development argues that the pair has defended at the 0.6892 level and with the 0.6892 resistance level intact. The market has been limited by the resistance band at the 0.6892 level on numerous occasions in the past candles but the dollar has gained its momentum and driven a breakout.
The AUD/USD closed lower on Friday as investors took profits ahead of the week-end. The lower close ended a three-day rally that was fueled by short-covering following a potentially bullish closing price reversal bottom earlier in the week. The catalyst behind the rally were dovish Fed minutes which strongly suggested the central bank may limit the number of rate hikes in 2018 and upbeat remarks about the economy from a key Reserve Bank of Australia central banker.