Today we are looking at selling NZDUSD on a pullback to the daily central pivot around 0.6560, and buying the AUDNZD on a pullback to the daily central pivot around 1.1220 after a weak GDT and Labor data print from New Zealand.
Current Market Sentiment:
Yesterday's NY session saw Factory Orders from the US come in as expected at 1.8%. Durable Goods were unrevised at 3.4%. Most major banks see annual US GDP at 2.9% for the second quarter. The Dollar Index remained relatively flat.
Thin trade volume due to US and European holidays saw volatility in sterling ahead of the triple-event Thursday. Cable fell over 50 pips within half an hour with no news catalyst, then after a 70+ pip rally off of session lows, fell once again more than 100 pips to new lows for the week.
Aussie remained the outperformer of the day with AUDCHF extending gains on the session, rallying 185 pips on the day (2.5x ADR).
The GDT Price Index fell for the tenth consecutive fortnight, showing a decline of 9.3%. The New Zealand unemployment rate increased to 5.9 percent in the June 2015 quarter, up from 5.8%. Job growth undershot estimates at 0.3% vs the 0.5% analysts expected. The Kiwi remains under pressure.
During Asia we saw mixed PMI data from China. China's July composite PMI which covers both manufacturing and services posted only fractionally above the neutral 50.0 mark at 50.2, down from 50.6 in June, and pointed to the weakest rate of expansion in 14 months. This contrasted with a further increase in service sector business activity, where the rate of growth accelerated to an 11-month high of 53.8 in July, up from June's recent low of 51.8. The poor Chinese data helped push the AUD off of it's NY session highs.
Coming up for the London session we have the Swiss CPI, Spanish Services PMI, and the UK Services PMI. AS usual, watch my weekly Forex news event's overview here in order to recap those particular events.
At no time should anyone view the information presented anywhere on this website as advice, recommendation or proven. Everything reflected is merely opinion and may not be accurate. The purpose of the site is to express the opinions and views of Jarratt Davis. There is no intention to offer specific help, advice or suggestions to anyone reading any of the content posted here.
Recommended Content
Editors’ Picks
GBP/USD stays weak near 1.2400 after UK Retail Sales data
GBP/USD stays vulnerable near 1.2400 early Friday, sitting at five-month troughs. The UK Retail Sales data came in mixed and added to the weakness in the pair. Risk-aversion on the Middle East escalation keeps the pair on the back foot.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Israel vs. Iran: Fear of escalation grips risk markets
Recent reports of an Israeli aerial bombardment targeting a key nuclear facility in central Isfahan have sparked a significant shift out of risk assets and into safe-haven investments.