Commodity currencies posted impressive recoveries against the greenback after the knee jerk suffered post FOMC. In fact, NZD/USD trades above past Thursday high, currently around 0.8350. AUD/USD recovery however, continues to find sellers in the 1.0500/20 area. The level has turned into a key resistance, but is far from discouraging Aussie buyers: the pair has surged too fast from the 1.0390/1.0400 area to even consider the upward pressure is over.
With stocks and commodities trading in red today, both currencies maintain intraday gains: the AUD/USD, will likely continue consolidating in the 1.0460/1.0510 area, ahead of early Tuesday Australian Trade Balance. The report is big enough to move the pair beyond recent highs if numbers surprise to the upside, a break of recent highs will advance an upward continuation towards the 1.0580/1.0600 price zone. Dips up to 1.0380 should be consider buying opportunities, and only below 1.0330 the upward trend will be challenged.
NZD/USD will also benefit from positive AUD numbers, or suffer with negative ones. Trading with a strong intraday upward momentum, an extension beyond 0.8400 will open doors for a test of the strong static resistance level at 0.8470; the pair has been unable to break above since August 2011. Expect limited pullbacks from the level, and a 100 pips straight run up if broken. With short term supports at 0.8330 and 0.8280, the pair can fall up to 0.8220 without jeopardizing current bullish midterm trend.
With stocks and commodities trading in red today, both currencies maintain intraday gains: the AUD/USD, will likely continue consolidating in the 1.0460/1.0510 area, ahead of early Tuesday Australian Trade Balance. The report is big enough to move the pair beyond recent highs if numbers surprise to the upside, a break of recent highs will advance an upward continuation towards the 1.0580/1.0600 price zone. Dips up to 1.0380 should be consider buying opportunities, and only below 1.0330 the upward trend will be challenged.
NZD/USD will also benefit from positive AUD numbers, or suffer with negative ones. Trading with a strong intraday upward momentum, an extension beyond 0.8400 will open doors for a test of the strong static resistance level at 0.8470; the pair has been unable to break above since August 2011. Expect limited pullbacks from the level, and a 100 pips straight run up if broken. With short term supports at 0.8330 and 0.8280, the pair can fall up to 0.8220 without jeopardizing current bullish midterm trend.
Recommended Content
Editors’ Picks
EUR/USD hovers around 1.0700 after German IFO data
EUR/USD stays in a consolidation phase at around 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price flat lines above $2,300 mark, looks to US macro data for fresh impetus
Gold price (XAU/USD) struggles to capitalize on the previous day's bounce from over a two-week low – levels just below the $2,300 mark – and oscillates in a narrow range heading into the European session on Wednesday.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.