Forex Market
NZD/USD Analysis
The New Zealand dollar was trading lower late Monday following a sharp sell off against the euro on technical reasons, weak trade data and positioning ahead of central bank meetings.
Asian Currencies Technicals
AUD/USD: Marginally Dips Below 21-DMA. The AUD/USD ended last week looking a little soft after 4 consecutive lower daily lows but the pair needs to close below the 21-DMA to see initial focus turn to the 200-DMA and overall focus turn to Oct monthly lows.
Mid-Day FX Market Analysis
EUR – Opened early Europe at $1.3002, Euro-dollar closed in NY at $1.2979 after recovering off a corrective pullback low of $1.2945 after pulling back from an intraday high of $1.3015 in late Europe.
Technical Analysis
Risk appetite remain firm (equities, bonds and commodities all doing fine). Multiple signs of a possible EURUSD & EURJPY peak coming hours/day, SEK & NOK continued and will continue to weaken.
Daily Market Technicals
EUR/USD: Need Confirmation Of Close Above May 2011 Trend Line. Bulls are still attempting another break above the long-term resistance line from May 2011, but need to see confirmation with a close above this line.
USD/JPY Analysis
Early sell interest in dollar-yen and euro-yen was quickly reversed as Japanese trust banks and investors emerged as strong buyers.
GBP/USD Analysis
Closed in NY at $1.6042 after rate recovered off late Europe pullback lows of $1.6014, settling around $1.6040 through the most part of the US afternoon.
EUR/USD Analysis
Closed in NY at $1.2979 after recovering off a corrective pullback low of $1.2945 and having seen an intraday high of $1.3015 in late Europe.
USD/JPY Analysis
The pair is likely to trade in a tight range today in Asia, with investors focusing on developments on U.S. budget talks for implications for the U.S. economy and risk sentiment.
Asian Currencies Technicals
AUD/USD: Drifting Back Towards 21-DMA. Lower daily lows the past four days see the AUD/USD remaining heavy and drifting back towards the 21-DMA.
Mid-Day FX Market Analysis
EUR – Opened early Europe at $1.2951 Euro-dollar closed in NY at $1.2955 after rate had recovered off session lows at $1.2880 as risk gained a boost on the back of comments from US Pres.Obama and House Speaker Boehner which were seen showing a compromise possible concerning the looming Fiscal Cliff.
Daily Market Technicals
EUR/USD: M/T Outlook Bearish Whilst Below 19-Mth Res Line. The recovery back above the 55-day moving average and subsequent hammer candlestick is seen as as red-herring and m/t risks still seen to the downside whilst below the long-term resistance line from May 2011.