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Kiwi pulls back after hitting 0.7430

New Zealand GDP came in as expected, at 0.8% QoQ and 2.5% YoY, but that did little to support the pair which was already being offered following more hawkish than expected Fed. Pre-election adjustments also going on.
The pair traded to as high as 0.7430 yesterday but has so far retraced to 0.73. It is currently stalling near 50 DMA. Some further correction is possible with 0.7250 and then 0.72 the support levels to watch. 0.7350 is the initial resistance.
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Kiwi looks supported as N.Z. election looms

Kiwi dollar remains supported but contained ahead of the general election on the weekend. There's also New Zealand second quarter GDP coming up on Wednesday evening (Thursday morning in N.Z.), just a couple of hours after the FOMC decision.
The pair is bumping into 0.73 - 0.7350 area, which capped the pair in 2016 and earlier this year, and includes 50 DMA. A successful break would put 0.75 back into focus. 0.72 is the first stronger support, reinforced by 100 DMA.
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Kiwi breaks below 2015 - 2016 channel

Better than expected New Zealand GDP for Q3 didn't have much of an impact as Q2 was revised lower by an equal amount. U.S./New Zealand bond spreads have been falling since Q3 which has lead Kiwi to adjust lower.
The pair broke below the 2015 - 2016 channel a couple of days ago but stalled near 0.69. 50.0% retracement of the 2015 - 2016 upswing is the next target but a pullback to the big figure at 0.70 or 200 DMA is not excluded.
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Yen continues to trade sideways

Final revision of Japanese GDP showed that the economy expanded in Q3 rather than contracted. Worries that the country entered a recession were diluted last week after much better than expected capital spending report. This may put some downside pressure on the pair.
Technically, the pair has been confined to a 150 pip range (122.25 - 123.75) for nearly a month. 50, 100 and 200 DMA, which are just about to converge, are a part of support band between 121.50 and 122.00. 124.00 - 124.25, which inc…
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Aussie breaks 0.70

After muted immediate reaction to the RBA interest rate decision yesterday, Aussie resumed its downtrend and lost nearly a cent by the end of the day. The decline continued overnight ahead of and after the release of weaker than expected Q2 GDP report:
GDP (QoQ) 0.2% vs. 0.4% expected, 0.9% previous
GDP (YoY) 2.0% vs. 2.2% expected, 2.5% previous
The pair is trading at new six-year lows and traded under 0.70 for the first time since April 2009. Support may come in between 0.6950 and 0.6980 (Low …
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Loonie breaks above 2009 high

Loonie set up for a break higher on Friday as it closed the week on the highest level since 2004. It followed through today as it rose about 80 pips from the open, to 1.3175 at the high of the day. Canadian GDP came out at -0.2% last week and renewed selling in oil are not helping the pair.
The rally ran out of steam near Weekly Resistance 1 (~1.3170). 1.3190 - 1.3200 (Daily Resistance 2, 00's) band is the next one with more around 1.3250 (August 31th 2004 high, Weekly Resistance 2, 50's). Suppo…
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Cable rallies on a solid GDP report

Cable rallied in response to a decent (preliminary) GDP figures:
GDP (QoQ) (Q2): 0.7% vs. 0.7% expected, 0.4% previous
GDP (YoY) (Q2): 2.6% vs. 2.6% expected, 2.9% previous
The first stronger resistance zone is seen between 1.5630 and 1.5670 and includes: Weekly Resistance 1 (1.5631), 50's (1.5650), Daily resistance 2 (1.5653) and Previous Week High (1.5671). The next one may then come within 1.5750 - 1.5800 band. Demand shall start coming in below 1.56.
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Japanese GDP improves

Final revision to Japanese Q1 GDP was released overnight and it was a pleasant surprise to the upside with the Capital Expenditure also posting a big gain.
GDP (YoY): 3.9% vs. 2.7% expected, 2.4% previous
GDP (QoQ): 1.0% vs. 0.7% expected, 0.6% previous
GDP Capital Expenditure (QoQ): 2.7% vs. 2.3% expected, 0.4% previous
There was minor selling in USD/JPY after the release on the prospect that no additional easing will be required anytime soon. The pair found support at Daily Pivot Point (125.27…
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USD weakness continues

Weaker than expected UK GDP, that was release this morning, proved to be just another dip buying opportunity in Cable. Decline to 1.5175 was short-lived and the pair was back to pre-release levels in less than one hour.
The pair made new high and flirted with 1.53 before US open. It is now breaking above the big level, after stream of bleak data from the States continues with Richmond Manufacturing Index (-3 vs. -2 expected) and CB Consumer Confidence (95.2 vs. 102.6 expected).
There's some imme…
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USD/CAD awaits Poloz

USD/CAD sold off sharply after BOC left rates on hold, revised up its inflation forecasts and only just slightly downgraded its shorter-term GDP projections. The pair is stalling ahead of Daily Support 1 (1.2418) and Weekly Support 1 (1.2415) and appears to be waiting for BOC Press Conference, which starts at 15:15 GMT.
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