Technical Analysis – NZDUSD favours trend reversal scenario

Posted on August 14, 2020 at 10:54 am GMT

NZDUSD changed course to the downside this month, printing lower highs and lower lows after peaking at a new 8-month high of 0.6714 in the four-hour chart. Besides the negative price action, the bearish cross registered between the 20- and 200-period simple moving averages (SMAs) this week, which is the first since January, further raised concerns of a down-trending market. With the Stochastics pushing for a rebound just below their 20 oversold level and the RSI not far above 30, [..]

Daily Market Comment – Dollar firms, stocks muted amid stalled stimulus talks, soft China data

Posted on August 14, 2020 at 9:00 am GMT

Hopes fade for a quick stimulus deal in the US as Congress leaves town Weaker-than-expected Chinese data adds to recovery worries Dollar pulled from lows as subdued tone weighs on stocks Stalemate on Capitol Hill A deal on a new coronavirus relief package looked increasingly out of reach as US Senators left Washington for the summer recess, pushing the likely timing of an agreement to September when both houses return. A last-ditch attempt on Wednesday to resume talks went nowhere [..]

Daily Market Comment – Vaccine fever shakes markets, RBNZ shoots kiwi down

Posted on August 12, 2020 at 8:13 am GMT

Vaccine news catapult global yields higher, push stocks lower Gold falls without a parachute – has it peaked? Dollar inches higher amidst the turbulence, but Fed speakers are a risk RBNZ expands QE and opens door to negative rates, kiwi stumbles   Putin says Russia has developed the first vaccine President Vladimir Putin unleashed mayhem in financial markets on Tuesday, after he announced to the world that Russia has developed the first successful coronavirus vaccine. Global bond yields erupted higher [..]

Technical Analysis – NZDUSD dips beneath 5-month uptrend line

Posted on August 12, 2020 at 7:43 am GMT

NZDUSD has declined beneath the five-month ascending trend line and the 40-day simple moving average (SMA), indicating a downside pullback. The momentum indicators are losing ground as the RSI is edging below the 50 level and the MACD is slipping below the trigger line in the positive zone. The Ichimoku red Tenkan-sen line is pointing down, approaching the blue Kijun-sen line. More downside pressure could send the market towards the 23.6% Fibonacci retracement level of the up leg from 0.5467 [..]

Daily Market Comment – US stocks flirt with record highs, gold retraces

Posted on August 11, 2020 at 8:21 am GMT

S&P 500 cruises towards all-time high as Trump floats capital gains tax cut Markets also take heart from ‘soft’ Chinese retaliation against US Gold pulls back as dollar and bond yields recover RBNZ meets overnight, might ‘talk down’ the kiwi more forcefully Wall Street sets its sights on new records Financial markets seem to have concluded that better days lie ahead for the global economy, with most asset classes trading in a buoyant manner this week. The S&P 500 is [..]

RBNZ meeting: Shooting the kiwi down – Forex News Preview

Posted on August 10, 2020 at 3:55 pm GMT

The Reserve Bank of New Zealand will conclude its policy meeting at 02:00 GMT Wednesday. Domestic economic data have held up better than expected, but storm clouds are gathering and the RBNZ may take proactive action. Policymakers could expand their QE programme, and lay out the conditions for using more unorthodox tools. At a minimum, the RBNZ will maintain a very dovish tone, and if it doesn’t shoot down the kiwi through more action, it may still do so through [..]

Week Ahead – Dollar eyes US stimulus talks, retail sales; UK GDP and RBNZ in focus too

Posted on August 7, 2020 at 1:10 pm GMT

Congressional talks in the United States on a new virus relief package will dominate the market headlines yet again in the coming week as the durability of the latest risk-on episode rests on a deal being reached. But investors will also be keeping a close watch on US retail sales figures to gauge how well consumption is holding up amid renewed virus restrictions. Progress on the recovery will be preoccupying the pound too as UK GDP numbers for Q2 and [..]

Daily Market Comment – Bank of England lifts sterling; dollar battered but still standing

Posted on August 6, 2020 at 8:25 am GMT

Sterling jumps after BoE seems reluctant towards negative rates, upgrades forecasts Stocks climb, dollar resumes downfall as markets keep betting Congress will deliver Dollar testing a crucial support area again – tomorrow’s NFP may be pivotal Otherwise, the spotlight remains on whether Congress will reach a deal soon BoE strikes a more cheerful tone, pound listens The Bank of England (BoE) unanimously voted to keep its policy unchanged today and struck a fairly optimistic tone. Even though it acknowledged the [..]

Daily Market Comment – Dollar comeback falters as yields sink, gold sparkles

Posted on August 5, 2020 at 8:39 am GMT

Greenback attempts comeback, but fails as bond yields plummet Gold salutes crumbling dollar and yields, hits new record above $2000 Stocks crawl higher as stimulus negotiations ‘move in the right direction’ Overall, bond market is saying something’s wrong, but stocks don’t mind Falling bond yields stop dollar rebound in its tracks Those hoping for a summer lull in financial markets come August have likely been left disappointed, as there has been absolutely no shortage of volatility so far this week. [..]


Jump in New Zealand unemployment may curb soaring kiwi – Forex News Preview

Posted on August 4, 2020 at 6:19 am GMT

New Zealand’s jobless rate is expected to have surged to a 7-year high in the June quarter as employers struggle to maintain staff numbers in the face of the global pandemic. The data, due on Wednesday (Tuesday, 22:45 GMT), might not pose an obvious threat to the local dollar’s 4-month-long uptrend versus its US rival as New Zealand has so far avoided being hit by a second wave of COVID-19 infections. However, the rocky recovery in the country’s main trading [..]

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