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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.