|Day's Range||0.674 - 0.678|
|52 Week Range||0.6426 - 0.7437|
Having failed to sustain 100-day SMA breakout, the EURUSD now rests around 50-day SMA level of 1.1380, breaking which nine-week old support-line, at 1.1320, and the 1.1260 can reappear on the chart. In case prices continue declining under 1.1260, the 1.1215 and the 61.8% FE level of 1.1080 may gain sellers’ attention. Meanwhile, the 1.1475 comprising 100-day SMA, followed by the 1.1550 & the 1.1570 could confine the pair’s near-term advances prior to challenging the 1.1610-25 region including 200-day SMA. If at all the pair manage to provide a daily closing beyond 1.1625, the ...
The pound steadied on Wednesday after having fallen late Tuesday when the U.K. parliament overwhelmingly voted down Prime Minister Theresa May's Brexit deal. The House of Commons voted 432-202 against May's deal, leaving uncertainty over the future of the country's plans to leave the EU on March 29.
The AUD/USD and NZD/USD could remain in a range on Wednesday, underpinned by the hopes that China will soon announce a stimulus package. As noted on Tuesday, traders will be particularly sensitive to any positive or negative comments about a potential trade deal between the U.S. and China.
The strong momentum into Friday’s close suggests the rally will likely continue this week especially if the U.S. Dollar resumes its downtrend and an air of optimism over the timely end of the U.S.-China trade dispute lingers.
With the Brexit deal sunk and Theresa May needing to head back to Brussels, there’s just a vote of no confidence to survive later today…
The greenback rose on Tuesday, while the euro was lower as data showed that Germany’s economy slowed in 2018 and investors were waiting for the results on the parliamentary vote on the UK’s withdrawal from the European Union. The data added worry over slowing global growth due to trade war disputes with the U.S. The measures should help ease investor worries over slowing global growth.
Appetite for risk should continue to generate the Aussie and Kiwi’s upside momentum today on the back of positive comments from China.
Investing.com - The U.S. dollar dipped against a currency basket on Tuesday amid expectations the Federal Reserve will hold off on raising rates this year due to weakness in global growth, while the pound crept higher before Britain's parliamentary vote on its Brexit deal.
It’s “risk on” in the early hours, with the main event of the day being Brexit. Has Theresa May done enough and will it sink the Pound?
Investing.com - The British pound was in focus and traded slightly higher against the U.S. dollar on Tuesday in Asia ahead of a vote on U.K. Prime Minister Theresa May’s Brexit deal.
Today’s lower price action in the AUD/USD and NZD/USD may only be a knee-jerk reaction to the data, which gave investors an excuse to book profits from the strong rally since the beginning of the year. Although a bearish surprise, the trade data is old or stale information. Currency traders tend to look forward so I expect the data to have a limited downside effect on the Aussie and Kiwi.
Investing.com - The safe haven yen strengthened and the Australian dollar fell on Monday after data showing that China’s exports unexpectedly fell in December, pointing to further weakness in the world's second-largest economy and deteriorating global demand.
Investing.com - The U.S. dollar was little changed, while the Chinese yuan slipped after data showed the country’s exports shrank the most in 2 years in December.
Based on last week’s price action and the close at .6834, the direction of the NZD/USD this week is likely to be determined by trader reaction to the main Fibonacci level at .6818.
There are no major reports from Australia or New Zealand this week so the focus will remain on developments in the U.S. The price action this week will continue to be driven by the direction of the U.S. Dollar. The greenback will largely be influenced by the direction of U.S. Treasury yields and yields will be moved by appetite for risk and a number of economic reports, Fed speakers and the government shutdown.
The greenback rallied on Friday after inflation data came in as expected and increased expectations that the Federal Reserve will pause its rate of interest rate hikes. Both readings matched the reading in the prior month and were in line with consensus forecasts. Fed chairman Jerome Powell made remarks Thursday that served as another sign that policymakers are in no hurry to hike rates as they look to have a better handle on whether slowing global growth and financial market volatility will negatively impact the U.S. economy.
Retail sales figures out of Australia provide the Aussie Dollar with a bounce as focus shifts to the UK, today’s stats and Brexit chatter.
The greenback was slightly higher on Thursday after dovish minutes from the Federal Reserve in the previous session caused a steep decline in the dollar. Minutes from the Fed’s December meeting showed that many policymakers are in favor of rates staying steady this year, increasing expectations that there will be no hikes in 2019. “Basically the dollar has run out of things to make it go higher," said Erik Nelson, currency strategist at Wells Fargo.
The current price action in the AUD/USD and NZD/USD indicate that investors remain positive that a US-China trade agreement could be in place by March 1, or at the end of the tariff truce between the two economic powerhouses. However, any deal may just be a preliminary step toward a longer-term solution. Both sides have some hard concerns that may not be addressed in any preliminary agreement.
With a light economic calendar for the day ahead, Brexit debate and the ECB monetary policy meeting minutes will be in focus.