|Day's Range||0.651 - 0.651|
|52 Week Range||0.5479 - 0.6790|
The Australian Dollar may have closed higher, but it posted its high for the session nearly five hours before the U.S. Non-Farm Payrolls report.
If the RBNZ does adopt negative rates, New Zealand would join Japan, Sweden, Denmark and other European countries that have done the same.
It’s all about the U.S labor statistics later today. How’s Trump going to spin this one? Perhaps more attacks on China…
The direction of the NZD/USD on Thursday is likely to be determined by trader reaction to yesterday’s close at .6426.
Investors are showing little reaction to the Australian GDP report because it is stale news.
The euro topped $1.12 for the first time in 11 weeks, extending the shift in the currency market amid optimism over economic reopenings across the globe. The euro traded at $1.1226 vs. $1.1168 on Monday. The New Zealand dollar and Australian dollar also rose against the greenback, as did the British pound which flirted with the $1.26 level.
It’s a busy day ahead. Service sector PMIs put the EUR and Greenback in focus, with the BoC and Brexit putting the GBP and Loonie in the spotlight.
The direction of the NZD/USD the rest of the session on Wednesday is likely to be determined by trader reaction to yesterday’s close at .6369.
With the RBA holdings policy unchanged, the focus returns to the key risk drivers. Continued unrest in the U.S and tensions between the U.S and China are in focus.
Tuesday will be the 12th day up from the last main bottom. This puts the NZD/USD inside the window of time for a closing price reversal top.
The RBA is expected to leave its benchmark interest rate at 0.25%. We’re also looking for policymakers to leave monetary policy measures intact.
The NZD/USD is in no position to change the main trend to down, but there is room for a near-term correction into .6074.
While the economic calendar is on the busier side, Trump’s news conference will be the main event, which is testing risk sentiment early on.
The U.S Dollar is in action later today, with the weekly jobless claims and durable goods orders in focus. There’s also Trump and Beijing to consider.
RBNZ economic stress test analysis suggests banks in the country can continue to lend and prosper through a broad range of adverse scenarios.
Traders are extremely optimistic; bears have to abandon their negative view and buyers are enjoying still relatively discounted stocks. Is it exaggerated?
As market jitters over the U.S and China resurface, the ECB and the EU Commission will be in focus later this morning…
The early tone of the NZD/USD on Wednesday is likely to be determined by trader reaction to Tuesday’s high at .6229.
The markets continue to move northwards. Who needs geopolitical risk, when you have hope? The big question must be whether it can continue…
The Aussie and Kiwi should be underpinned throughout the session on Tuesday as long as investors remain focused on the global economic recovery.
It’s “risk-on” this morning as the markets continue to brush aside U.S – China tensions. Economic data later in the day will garner some attention, however.