Saxo Team of Analysts - HK
Saxo Capital Market HK Ltd
Market fails to complete Friday's attempt to push USD higher vs EUR and JPY
EURCHF continues to trade very close to key resistance
NZD shows signs of fatigue ahead of a potentially dovish RBNZ meeting
Gold pursues comeback higher after increasingly shallow selloff attempts
Key FX developments today
There's been mostly uninspiring range trading today, but that is also a bit interesting, as the market failed to follow through on Friday's attempt to take the USD stronger against both the euro and the yen.
Elsewhere, EURCHF remains one of the more interesting focal points for this market as it continues to trade very close to key resistance and where a selloff intraday was quickly met with a bid tone and move back toward 1.0980. See chart below for more.
The kiwi continues to show signs of fatigue ahead of the Reserve Bank of New Zealand meeting, which risks rolling out a dovish tone after recent turmoil in the market and a weak CPI print for the fourth quarter. Note the AUDNZD levels in the chart below.
Gold continues to come back higher after increasingly shallow selloff attempts, and a strong close from here through resistance would be one of the more interesting signals in a long time for what has been a rather uninspiring chart.
EURCHF
EURCHF bears watching as the pair nears the 1.100 area, which is particularly interesting as it seems to be trading outside of any correlation with risk appetite and failed to sell off notably after a dovish ECB last week. There is considerable white space in the "gap" to 1.20 on the chart if it does manage a break and closes above 1.100.
AUDNZD
The kiwi has traded on a weaker footing ahead of the RBNZ meeting this week, which could see more pronounced dovish guidance from Governor Graeme Wheeler and Company. The action has been very choppy, so a firm close above 1.0800 and followthrough in the days ahead would be needed to keep the focus on a new trend building for a test of the old 1.1300+ resistance.
XAUUSD
Gold continues to bounce back from selloffs, after maintaining its composure above the $1,075-80/oz area support. A close clear of $1,110+ would be one of the more interesting breakout signals in some time for this chart. Still, there is considerable two-way risk over the FOMC.
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