|Day's Range||0.712 - 0.715|
|52 Week Range||0.6919 - 0.8136|
We could be looking at a mixed market on Wednesday with the NZD/USD continuing to strengthen on the inflation news and the AUD/USD weakening on U.S. – China concerns.
With trade data out of Japan reflecting the slowdown in Asia, Capitol Hill, the Oval Office and Parliament will be in focus through the day.
The New Zealand Dollar is trading higher against the U.S. Dollar early Wednesday in reaction to data which showed that consumer inflation edged higher in the fourth quarter, dimming the possibility of an interest rate cut. The Dollar/Yen is recovering from yesterday’s weakness, primarily due to the slight recovery in U.S. equity markets. Short-covering ahead of the Bank of Japan’s interest rate decision is also taking place.
Investing.com - The U.S. dollar was holding steady against a basket of its rivals on Wednesday and the yen was broadly lower as risk sentiment improved, but concerns over slowing global growth and U.S.-China trade tensions looked likely to keep gains in riskier assets in check.
Investing.com - The Japanese yen traded lower on Wednesday in Asia as risk aversion eased, but disappointing Japanese trade figures underlined the need for continued support for the trade-dependent economy.
The Australian dollar pulled back a bit during the trading session on Tuesday, breaking significantly below the 50 day EMA. However, I do think there is play support below, pictured by the massive bullish candle from the 0.70 level.
The Euro is continuing to lose momentum against the USD and in Monday’s session, it pulled back after rallying a bit to test the 1.1350 level underneath. There are several support points underneath and break below 1.13 level would invite more trouble. The market will continue to be difficult and until unless the pair breaks above the 1.15 level and the 200 Day EMA, it will continue to chop around. …Read MoreGBP/USD
The bleak economic forecasts are likely to continue to pressure the Aussie and the Kiwi on Tuesday especially if investors start to move money into the safe-haven U.S. Dollar. Basically, if the global economy slows especially China then the Australian and New Zealand economies should feel similar pressure. The would push any chances of a rate hike by the Reserve Bank of Australia and the Reserve Bank of New Zealand further out into the future.
It’s risk off early in the day, growth forecast revisions by the IMF and central banks coming amidst softer GDP numbers.
Based on last week’s price action and the close at .7165, the direction of the AUD/USD this week will be determined by trader reaction to the 50% level at .7221.
Investing.com - The dollar was trading near two-week highs against a basket of its rivals on Tuesday as concerns over the outlook for the global economy underpinned investor demand for safe haven assets.
Investing.com - The U.S. dollar steadied on Tuesday in Asia after the International Monetary Fund (IMF) cut its 2019 and 2020 global growth forecasts overnight.
The Australian dollar initially tried to rally during the trading session on Monday but gave back the gains and rolled over towards the 0.7150 level. At this point, it certainly looks as if we are running out of momentum to the upside, so I think it’s only a matter of time before we fall a bit further.
If the market breaks below the 1.1350 level, then it could break down towards the 1.12 level. The AUD witnessed a massive resistance as it tried to break higher but has pulled back from there. It has been a bit bullish in the market and if the market breaks above the 110 level, then the market could witness a lot of upside pressure.
Investing.com -The safe haven Japanese yen firmed against the dollar on Monday as investors digested the latest signs of a slowdown in China after data pointing to a dip in fourth quarter growth.
With a Plan B seemingly in the wind, Theresa May could be in hot water later today, with Parliament getting restless.
Investing.com - The Chinese yuan fell on Monday in Asia after data showed China’s GDP slowed in the fourth quarter.
The tone changed from short-term bullish to short-term bearish last week when U.S. Treasury yields started to rise. This helped make the U.S. Dollar a more attractive investment. Yields are being boosted by increased demand for risky assets tied to the optimism over the positive developments in the trade talks between the United States and China.
Based on last week’s price action and Friday’s close at .7165, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the main Fibonacci level at .7153.
The Australian dollar went back and forth during the week, testing the area just below the 0.7250 level. This is an area that of course is important as we have seen more than once, and with all of the headlines out there it’s not surprising that we continue to see a bit of hesitation.
The Australian dollar went sideways during the day on Friday, as we were very quiet yet again. The market is pressing significant resistance, and at this point I think we have some decisions to be made.
The Euro continued with its back and forth momentum in the Thursday’s session as the 1.14 level has been important in the short term charts and also attracting a lot of interest. Going forward, the market will continue to grind higher, as it is trying to form a bit of rounded-bottom pattern but the 1.15 level above is likely to offer significant resistance and of course the 200 Day EMA level above. …Read MoreGBP/USD
The pound was lower on Friday as the uncertainty over Brexit continued to put pressure on the economy. U.K. retail sales fell for the first time since March, suggesting that consumers are becoming more cautious as Brexit nears. Prime Minister Theresa May's Brexit deal was defeated in parliament on Tuesday but she won a subsequent vote of confidence, which has removed some political uncertainty.
Geo-political risk will remain the key driver ahead of the weekend, with Brexit and the possibility of a reduction in tariffs on Chinese goods on the table.
Based on the early price action, the direction of the AUD/USD on Friday is likely to be determined by trader reaction to the steep uptrending Gann angle at .7204.