AUD/USD bulls seeking deeper test of the daily resistance zone. Bears need to take out daily support at this juncture while the RBA comes as a major hurdle for AUD AUD/USD will be the focus for the open on Monday given the economic calendar’s line up which considers Chinese PMIs as the main data for
FX
Previewing next week key data releases from the US, “payrolls probably rose strongly by pre-covid standards but we see some downside risk versus the consensus again this month,” said TD Securities anaysts. Key quotes “Our forecast implies a still-sizeable 7.7mn net decline from the pre-COVID level. The unemployment rate probably resumed its downtrend after a surprising
GBP/USD trims losses as the US dollar pulls back, remains in the range The GBP/USD bottomed before the release of US data at 1.4135 amid a rally of the US dollar across the board. Afterward, the greenback lost strength favoring a rebound in cable back above 1.4150. The intraday bias still points to the downside
Turkish Finance Minister Lutfi Elvan said on Friday that he expects the economy to grow by 6% in the first quarter, as suggested by the economic indicators. Additional comments “Expected this trend to continue with the support of external demand.” “Government’s priorities are price stability, controlling current account deficit, boosting labor market.” more to come
NZD/USD has been bid on the day as the US dollar pulls back. A slightly risk-on tone has helped to support the commodity complex on Thursday. NZD/USD has, for the most part, remained in the hands of the bulls following this week’s surprise hawkish outcome of the Reserve Bank of New Zealand. At the time
Silver once again managed to find decent support near the $27.45 confluence support. Mixed oscillators on hourly/daily charts warrant caution before placing directional bets. Silver attracted some dip-buying near the lower end of its weekly trading range, around the $27.45 region and refreshed daily tops during the early part of the European session. The mentioned
What you need to know on Thursday, May 27: The American dollar edged lower at the beginning of the day but ended it with gains against most of its major rivals. Stocks seesawed between gains and losses while US government bond yields remained subdued, somehow indicating that speculative interest is finally taking note of US
The US dollar is lurching lower with some key developments pointing to further weakness over the short-term such as USD/CNY – a key currency pair not just for Asia but for G10 also – breaking key technical support at 6.4000 with no obvious sign of opposition from the Chinese authorities, economists at MUFG Bank report.
USD/CAD is currently consolidating around the lowest levels since 2017. Bulls are looking for an upside correction on a monthly basis as accumulation kicks in. Funds travelled between a high of 1.2078 and 1.2029 on the day with some upside pressure, rising 0.12% at the time of writing. The loonie edged lower against its broadly
The AUD only had a modest gain against the USD over the past month, underperforming most other G10 currencies. Despite a dovish Reserve Bank of Australia, economists at HSBC still see potential upside in the aussie this year due to strong domestic fundamentals and a relatively supportive global backdrop. Australia’s sizable budget and its relatively
A new Iran deal is less likely than it was last week. UN nuclear watchdog is extending a recently expired monitoring agreement by a month. The price of oil as measured by West Texas Intermediate spot is higher by over 3.26% at the time of writing, up from a low of $63.65 and reaching a high of $66.11. The
Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank maintained a bullish bias on the EUR/USD pair and expects it to test 2021 swing highs, near the 1.2349. Key Quotes “EUR/USD again tested and held below 1.2243, the February high, twice last week. The daily RSI has diverged and attention has reverted to the
What you need to know on Monday, May 24: The greenback recovered on Friday, ending the week mixed across the FX board. The American appreciated following upbeat US data and comments from Federal Reserve officials suggesting a sooner rather than later discussion on tapering amid signs of heating inflation. On Friday, Atlanta Federal Reserve President
Gold price retested three-month highs of $1890, although settled the week near $1880 levels, registering the third straight week of gains. Gold price remained undeterred by the FOMC minutes, which offered subtlest hints on tapering, as growing inflation risks continued to support the traditional inflation hedge. Further, persistent weakness in the US dollar and the
The Swiss National Bank (SNB) Chairman Thomas Jordan made some comments on the monetary policy outlook and exchange rate value, in an interview with Swiss daily Neue Zuercher Zeitung on Saturday. Key quotes “The franc remains highly valued.” “Inflation is only slightly above zero.” “Productive capacities are not fully utilized in Switzerland.” “Against this background,
GBP/USD drops toward 1.4150 as the US dollar strengthens on economic data Cable retreats from monthly highs, turns negative for the day. US dollar rises across the board supported by US economic data. The GBP/USD dropped to 1.4153 amid a rally of the US dollar across the board. Cable retreated sharply after hitting at 1.4233
USD/JPY continues to edge higher in the American session. US Dollar Index remains on track to close above 90.00. Several Fed policymakers voice concerns over rising inflation. The USD/JPY pair gained traction during the American trading hours and rose to a fresh daily high of 109.00. As of writing, the pair was up 0.2% on
German/ Eurozone flash PMIs Overview Amongst the Euro area economies, the German and the composite Eurozone PMI reports hold more relevance, in terms of their impact on the European currency and the related markets as well. The flash manufacturing PMI for Germany, due at 0830 GMT, is seen a tad weaker at 65.9 in March