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U.S. dollar strength continues. After USD/JPY break to the upside on Wednesday, USD/CHF followed yesterday. The pair rose above parity level and is currently testing year's high near 1.0050. It's pretty much open space above that with big figures as resistance levels. A break lower in EUR/USD would be helpful, given the correlation between euro and franc.
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AUD/USD resumes the downtrend
Month-long recovery from 0.7415 to 0.7675 in AUD/USD (almost) proved to be just another pullback in the downtrend, as U.S. dollar buying resumed. A successful break below May's low will put 0.735 into focus. 0.75 - 0.755 should now act as a resistance.
No relief for NZD/USD bulls yet
NZD/USD has been one of the most beleaguered currency pairs recently. It fell to new lows in the latest round of U.S. dollar buying, which coincided with new highs in U.S. treasury yields. 0.685 (channel support, long-term trendline area) is the initial support area. A break below would target 2017 low (0.6775).
No changes from RBA, holiday trading in European morning
RBA keeps monetary policy stance firmly in neutral mode, with cash rate still at the record low of 1.50%. The U.S. dollar part of equation is currently driving AUD/USD, which made a marginal new low shortly after Europe opened for business. Or for the observance of Labour Day, that is. The holiday is likely to keep price action contained until afternoon.
U.S. dollar spikes lower but recovers after NFP
U.S. jobs & wages report missed expectations on most metrics, including headline NFP figure. U.S. dollar spiked lower immediately after the release but recovered in the following hours to be now back above pre-release levels. Only Canadian dollar has been defying gravity to some degree with the help of its own jobs report.
Swissie moves closer to 2016 high
Second trading day of the year saw U.S. dollar strength continue but bulls were unable to push price to new cycle highs. Inflation is rising in Europe and, if sustained, will be a headwind to the dollar rally.
Sellers stepped in above 2015 high (1.0325), just below 2016 high (1.0340). A successful break would target long term support/resistance line (1.0450 - 1.05). Initial support is seen in 1.02 - 1.0250 band and a stronger one near 50 DMA.
Sellers stepped in above 2015 high (1.0325), just below 2016 high (1.0340). A successful break would target long term support/resistance line (1.0450 - 1.05). Initial support is seen in 1.02 - 1.0250 band and a stronger one near 50 DMA.
Cable looks supported below 1.25
British pound has been withstanding U.S. dollar strength well and is basically flat compared to the beginning of the last week. Weaker inflation figures failed to send the pair lower yesterday. There's more U.K. data coming in today (jobs and wages) and tomorrow (retail sales).
1.25 is the current bull/bear line in sand. 50 DMA is the first resistance level to watch and then the next one in 1.275 - 1.28 band. Some stronger demand could be expected between 1.23 and 1.24.
1.25 is the current bull/bear line in sand. 50 DMA is the first resistance level to watch and then the next one in 1.275 - 1.28 band. Some stronger demand could be expected between 1.23 and 1.24.