|Day's Range||0.676 - 0.685|
|52 Week Range||0.6426 - 0.7398|
Based on the early price action, the direction of the NZD/USD on Friday is likely to be determined by trader reaction to a pair of Gann angles at .6814 and .6799.
A choppy start to the day sees the Aussie Dollar on a rollercoaster. The focus will be on economic data out of the Eurozone, trade talks and Brexit.
The greenback recovered from its sudden fall after disappointing economic data on Thursday raised concerns about the strength of the U.S. economy and supported the Federal Reserve’s decision to hold rates steady for the foreseeable future. New orders for durable goods, excluding volatile items, fell unexpectedly in December, while business activity in the mid-Atlantic region declined to its weakest level since May 2016, according to the Philadelphia Fed's monthly survey.
Economic indicators out of Japan this week have proven to be more of an economic alarm bell than an indicator. What’s next for the BoJ?
Today’s wicked two-sided trade indicates investor indecision over Reserve Bank of Australia monetary policy. Although it would have been nice to see a drop in the unemployment rate, the steady jobs growth suggests there’s still little need for the RBA to cut interest rates in the near-term. However, falling housing prices and the weakness in the services sector offsets these gains. Therefore, it’s easy to conclude why the RBA shifted forward guidance to a more neutral setting.
Economic data out of Japan spells more trouble, with a particularly busy economic calendar placing focus on the EUR and USD.
Investing.com -- The euro turned higher against the dollar in early trading in Europe Thursday, as purchasing manager indices from France and Germany signalled that the euro-zone economy may be bottoming out after its slowdown at the end of 2018.
Investing.com - The greenback was flat on Wednesday, as investors waited for the Federal Reserve to release the minutes from its latest monetary meeting.
Today’s data raises issues about inflation in New Zealand and the employment situation in Australia, but this may have to take a backseat ahead of today’s release of the Fed minutes. Traders are likely to react to any news regarding the Fed’s balance sheet. This will determine whether the minutes are dovish or hawkish.
Based on the recent price action, the direction of the NZD/USD the rest of today’s session will likely be determined by trader reaction to the reversal top at .6894.
Trade data out of Japan suggests more doom and gloom as trade negotiations. Brexit chatter and the FED minutes will be in focus through the day.
Investing.com -- The dollar was lower against the euro and the British pound in early trading in Europe Wednesday as a fall in U.S. Treasury yields reduced its attractiveness amid expectations of dovish news on interest rates from the Federal Reserve.
Negative sentiment towards the global economic outlook weighed on the commodity currencies, with economic data and Brexit putting the Pound in Focus.
This week, the economic news shifts back to the Australian Dollar. The week will start with the Aussie supported by the resumption of trade talks between the United States and China, but this time in Washington. Both parties cited progress in last week’s trade talks which took place in Beijing.
Risk appetite delivers early moves across the riskier asset classes. With a light economic calendar, vehicle sales out of China will be of interest.
Theresa May’s troubles continue to pin back the Pound and the stats have provided little help. More swings on the cards later today.
Investing.com -- The dollar was edging higher against major European currencies early Friday in Europe after weak Chinese inflation data overnight reinforced concerns about global growth.
Brexit and Trade talks are on the political agenda, while Germany’s GDP numbers and retail sales figures out of the U.S will be in focus on the data front.
Early in the trading session, China released January trade balance data that beat consensus expectations in both the Chinese Yuan (CNY) and U.S. Dollar (USD) terms. Looking at the CNY side, the trade balance figures came in at 271.42 billion compared to 395 billion CNY reported in December. As far as the USD side is concerned, the trade balance beat expectations of $33.50 billion surplus by coming in at $39.16 billion.
With the start of high-level trade talks between the United States and China, Asian market traders are taking a cautious approach to the stock market on Thursday. However, under the cautiousness, there is some optimism. China released better-than-expected January trade balance data early Thursday. The news seemed to have a positive effect on the Australian and New Zealand Dollars, but failed to add to this week’s strength in the major Asian stock markets.
Investing.com - The Chinese yuan was little changed on Thursday in Asia after better-than-expected trade numbers for January, as analysts warned of the presence of business distortions due to national holidays and cyclical trends.
The U.S. dollar inches higher against many of its rivals early Wednesday after a brief period of jerky trading, as market participants make sense of rumors surrounding Brexit, central bank updates and myriad economic data including inflation in the U.S.
Will inflation numbers deliver a boost for the Pound or the Dollar, or will they ease pressure on the respective central banks to make a move?
Despite the weaker outlook, and an indication that the next move in interest rates could be lower, the New Zealand Dollar is soaring against the U.S. Dollar early Wednesday. This suggests a “sell the rumor, buy the fact” reaction to an oversold market.