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U.S. and China are said to be discussing Chinese market access and trade in a more calmer way. That's significant improvement over last week's retaliatory rhetorics. Better risk tone to start the week has seen JPY and CHF pairs trade higher. EUR/CHF appears ready to challenge last week's high near 1.175 with 1.185 and 1.20 the next targets.
al_dcdemo's Blog
Aussie pulling back after six days of gains
There was some Australian economic data released overnight. AIG Manufacturing Index, MI Inflation Gauge and ANZ Job Advertisements came in better than expected/previous while Building Approvals lagged. Caixin Manufacturing PMI from China ticked back to into expansion.
All this failed to lift the tone in the Aussie which appears to have entered a correction phase after six consecutive days of gains during which it traded to 2016 - 2017 trendline near 0.7725. June high at 0.7635 may prove to be th…
All this failed to lift the tone in the Aussie which appears to have entered a correction phase after six consecutive days of gains during which it traded to 2016 - 2017 trendline near 0.7725. June high at 0.7635 may prove to be th…
Aussie rallies from the December low
Australian Building Approvals for November came in better than expected overnight. Positive Chinese business sentiment and stabilization in yuan is also what has contributed to the recent strength in the Aussie.
From just below 0.7160 in December, the pair rose to 0.7355 before Friday's U.S. NFP report. 50 DMA is the next target and then 0.7450 - 0.75 band. Stronger demand may be waiting near 0.7250.
From just below 0.7160 in December, the pair rose to 0.7355 before Friday's U.S. NFP report. 50 DMA is the next target and then 0.7450 - 0.75 band. Stronger demand may be waiting near 0.7250.
Quiet start to the week
Major currencies opened with gaps again but this time around with smallish ones in what appears to be the quietest open so far this year. Improvement in risk sentiment seemed to come after China managed to stabilize its currency and stock market.
Given the magnitude of the bounce in stocks, oil and risk sensitive currency pairs it seems that an interim bottom may be in place. However, all macroeconomic themes are still ongoing, so it may be too early to speak of a reversal.
Given the magnitude of the bounce in stocks, oil and risk sensitive currency pairs it seems that an interim bottom may be in place. However, all macroeconomic themes are still ongoing, so it may be too early to speak of a reversal.
Kiwi bounces from 0.64 support
China released its GDP, industrial production and retail sales data overnight. All three data points slightly missed their respective estimates, which was not entirely unexpected. The numbers were not as bad as feared though and, after a brief sell-off, risk trades rebounded.
Having fallen 450 pips since the beginning of the year, Kiwi is poised to close in the green for the second consecutive day and post only the third green day this year. 0.64 looks like a short-term bottom now that the pair …
Having fallen 450 pips since the beginning of the year, Kiwi is poised to close in the green for the second consecutive day and post only the third green day this year. 0.64 looks like a short-term bottom now that the pair …
Huge moves to start the week
Thin summer liquidity may have contributed to today's rout in the markets. China and global growth worries, commodity (especially oil) price falls and incoming Fed tightening are being cited as the main reasons for the current risk-off sentiment.
Daily range in USD/JPY was almost 600 pips or 4.5% (largest since 1998), but that seems little in comparison with EUR/NZD (1550 pips) and GBP/NZD (1600 pips). Euro, Swissie and Cable all benefited and are up 100 - 200 pips on the day.
Daily range in USD/JPY was almost 600 pips or 4.5% (largest since 1998), but that seems little in comparison with EUR/NZD (1550 pips) and GBP/NZD (1600 pips). Euro, Swissie and Cable all benefited and are up 100 - 200 pips on the day.