Welcome and good morning from cold and rainy Hamburg. The summer seems to be over in Germany after rainy and cold days brings a bad mood. But the good news is still that the global economy shows more and more positive data. Nevertheless we wish you a nice day and successful trades.
Market review
The NZD gained against all the 16 major currencies after the RBNZ left interest rates unchanged for the first time in a year and commented that it expects the economy is on the way to recovery. “We expect the New Zealand economy to being growing again toward the end of this year, but the recovery is likely to be slow and fragile,” Reserve Bank Governor Alan Bollard said in a statement in Willinton today. The JPY decreased close to the lowest level in eight months versus the AUD after a government report showed the South Pacific nation lost fewer jobs than assumed in May and urban investment in China surged. Benchmark interest rates are 3 percent in Australia and 2.5 percent in New Zealand, compare with 0.1 percent in Japan and as low as zero in the USA, it increases demand for the South Pacific nation’s higher-yielding assets. The NZD/JPY climbed for a second day and reached the level at 62.30 after touching a day high at 62.50. The strong NZD gained also against the USD. It rose 1.7%, climbing as high as 0.6374.
The USD may rise before a report that probably will show, retail sales increased in May for the first time in three months. The EUR/USD climbed back over the 1.400 mark after it fell yesterday and touched a low at 1.3916. The USD/JPY fell under the 98.00 level after it rose yesterday to a high of 98.44.
AUD/JPY
Since the end of January the AUD/JPY is trading in an upward trend channel. It finally reached the psychological resistance of 80.00 and the upper line of the channel. The simple MA is signalizing a return but if the Market goes through the resistance lines it may get a boost inside the trend channel.
CAD/JPY
A similar movement in the CAD/JPY, due to the economic return the JPY is getting weak. The pair is touching the upper line of the bullish trend channel for the 4th time. But as we can see, both, the Bollinger bands and the MACD, seem to signalize a return. So the market may try again the lower line of the channel.
