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New Zealand GDP for Q4 2017 came in weaker than estimated. NZD/USD fell about 30 pips ahead of and after the release but retraced that in the following hours. The pair's been quite resilient even amidst wobbly risk sentiment of late, mostly owing to U.S. dollar weakness. 0.72 - 0.74 range in play still. A successful break could see 200 pips in either direction.
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NZD/USD recovers on the back of US dollar weakness
NZD/USD has almost completely recovered since it hit 38.2% retracement of the November - January rally last week. Inflation Expectations came in firm but the U.S. dollar weakness is the main driver. If positive risk mood holds, the pair could be on the way to retest 0.75 and possibly beyond, to the highest level since 2015.
U.S. dollar falls further on Mnuchin comments
U.S. dollar extended losses yesterday after treasury secretary Mnuchin told World Economic Forum that a weak dollar is good for trade. USD/CHF fell below 2014 - 2017 support line and stalled at the strong support area 0.94 - 0.945. A successful break would bring 0.90 - 0.91 into focus.
Kiwi pulls back after trading above 0.73
Kiwi has been on a quite a bull run since mid May. U.S. dollar weakness appears to have been the main driver. The pair has posted four consecutive green weeks and surged above the channel trendline on Wednesday.
Those prices were not sustained and Kiwi pulled back sharply. A period of consolidation and/or correction seems to be the most likely scenario. 0.7170 - 0.72 is the immediate support band. 0.7225 - 0.7250 is the resistance.
Those prices were not sustained and Kiwi pulled back sharply. A period of consolidation and/or correction seems to be the most likely scenario. 0.7170 - 0.72 is the immediate support band. 0.7225 - 0.7250 is the resistance.
USD/CHF consolidates below 0.97 ahead of the FOMC
Swiss franc is one of the best performing major currencies this year. Euro strength and U.S. dollar weakness are both supporting this. SNB meets tomorrow and no change is expected from them for at least as long as ECB keeps rates on the floor.
USD/CHF encountered some demand ahead of 0.96 before pulling from the lows. If that goes, 0.95 area looks stronger and might be backed by SNB. 0.97 - 0.975 is the initial resistance. 0.98 - 0.985 is another one.
USD/CHF encountered some demand ahead of 0.96 before pulling from the lows. If that goes, 0.95 area looks stronger and might be backed by SNB. 0.97 - 0.975 is the initial resistance. 0.98 - 0.985 is another one.
USD/CHF nearing 0.95 level
Yesterday's bout of risk-off in markets didn't impact USD/CHF as much as USD/JPY. The former continues to move in tandem with EUR/USD, especially since U.S. dollar weakness has been driving most pairs recently.
USD/CHF broke the six-month consolidation to the downside and fell below 2011 - 2016 trendline in the process. No sign of SNB as yet but EUR/CHF is well off the floor anyway. Area near 0.95 looks like a strong support with 0.97 the initial resistance.
USD/CHF broke the six-month consolidation to the downside and fell below 2011 - 2016 trendline in the process. No sign of SNB as yet but EUR/CHF is well off the floor anyway. Area near 0.95 looks like a strong support with 0.97 the initial resistance.
Cable knocking on 1.30
British pound was not in focus during the past several days but has been underpinned by GBP/JPY and GBP/CHF buying. It has taken advantage of the U.S. dollar weakness this morning. BOE QIR tomorrow is the main thing to prepare for.
GBP/USD is knocking on the big figure (1.30) again. A break above would likely trigger some buy stops. 23.6% retracement of the 2014 - 2016 downtrend is the next target. Area around 1.29 is the initial support and then stronger one near 1.2830.
GBP/USD is knocking on the big figure (1.30) again. A break above would likely trigger some buy stops. 23.6% retracement of the 2014 - 2016 downtrend is the next target. Area around 1.29 is the initial support and then stronger one near 1.2830.
Swiss franc benefits from safe haven flows
Swissie has been one of the big movers in the past few days. There were no particular drivers cited but U.S. dollar weakness after Friday's NFP report and flight to safety in the run up to UK EU referendum are certainly two of them.
The pair lost 250 pips in three days and more than 300 from the top, set in May near 0.9950. It is back below the three daily moving averages and is currently testing 2011 - 2016 trendline with 100 WMA (0.9625) just below. 50 DMA is the initial resistance.
The pair lost 250 pips in three days and more than 300 from the top, set in May near 0.9950. It is back below the three daily moving averages and is currently testing 2011 - 2016 trendline with 100 WMA (0.9625) just below. 50 DMA is the initial resistance.
Kiwi bumps against strong resistance
Mostly owing to U.S. dollar weakness, Kiwi proved to be impressively resilient amid market turmoil. It is currently down on the week only against the lowest of low yielders: euro, yen and franc.
Declining 2014 - 2015 trendline, reinforced by the broken September - December trendline and 200 DMA, remains the resistance level to watch. If it gives way, 0.69 - 0.70 will come into focus. 50 and 100 DMA are the immediate support levels ahead of 0.65 - 0.6550.
Declining 2014 - 2015 trendline, reinforced by the broken September - December trendline and 200 DMA, remains the resistance level to watch. If it gives way, 0.69 - 0.70 will come into focus. 50 and 100 DMA are the immediate support levels ahead of 0.65 - 0.6550.