|Day's Range||0.639 - 0.639|
|52 Week Range||0.6207 - 0.6972|
The Australian and NZ dollars have steadied on Friday, after impressive gains of 1.0% on Thursday. Chinese GDP missed its estimate, but the yuan is holding its own against the U.S. dollar.
Investing.com -- The dollar was mixed in narrow ranged in early trading in Europe Friday, while the pound retreated as doubts swirled both about the merits of Boris Johnson’s Brexit deal and about the likelihood of him persuading Parliament to approve it.
While China’s economy slowed in the 3rd quarter, things could have been much worse. Relief all round as focus now shifts to Brexit…
Before the release of the jobs data, a senior Reserve Bank official said, Australia’s property downturn is not only hitting household consumption, it’s a big drag on economic growth and inflation.
Based on the early price action and the current price at .6294, the direction of the NZD/USD on Thursday is likely to be determined by trader reaction to the short-term 50% level at .6279.
Based on the early price action and the current price at .6314, the direction of the NZD/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at .6294.
The Dollar found strong support early, as the markets considered the implications on existing tariffs on the economic outlook. Brexit chatter also weighed.
Even though the Aussie and Kiwi were boosted by the news, I don’t think it was particularly bullish because the older tariffs remain in place, and a decision had not been made over additional U.S. tariffs scheduled for December.
Based on the early price action and the current price at .6342, the direction of the NZD/USD the rest of the session on Friday is likely to be determined by trader reaction to the downtrending Gann angle at .6346.
Prices could surge further later in the session if the two countries could agree to at least a partial agreement on issues such as currency and agriculture buying. This would leave more controversial issues such as protections against Chinese theft of U.S. intellectual property, for later negotiations.
Investing.com -- The British pound consolidated gains early Friday after its biggest one-day jump in two years in response to signs of a possible agreement on the Irish border problem that has plagued the Brexit negotiations.
Investing.com -- The dollar was lower across the board in early trading Thursday amid a welter of often contradictory reports about the upcoming trade talks between the U.S. and China which resume later in Washington.
While economic data will bring the EUR, GBP, and USD into focus, a resumption of U.S – China trade talks is the main event of the day.
Traders will be focused on the Fed minutes from its mid-September policy meeting. Traders are hoping the minutes offer clues as to whether further policy easing is yet to come.
A light economic calendar leaves geopolitics and U.S – China trade talks in focus in particular. Expect negative news to weigh heavily on risk sentiment.