Rally in Asian stocks made the JPY weak against a basket of currencies. The expectations of some Chinese economic data may be the reason for the increase of the stocks. Nevertheless, have a great and successful trading day.


Market review

The JPY dropped for a sixth day versus the EUR while Asian stocks rallied. Chinese reports are expected to show that the country’s industrial production gained and exports dipped with a slower pace, which decreased demand for the JPY as a refuge. The JPY fell also against other 13 major currencies while economists said that China’s August industrial production may had strengthen 11.8 percent from a year earlier and exports may droped 19 percent last month. The Nikkei 225 Stock Average advanced 1.6 percent while the EUR/JPY climbed to its high at 134.30. The JPY fell for a 6th day against the CHF after the MSCI Asia Pacific Index of regional shares climbed 0.8 percent.

The USD-Index, which tracks the USD against a basket of major currencies, was at 76.979 after it touched its low at 76.803 yesterday, the lowest level since September 26th of 2008. Yesterday, the NZD reached a record high against the USD as Reserve Bank Governor Alan Bollard left interest rates at 2.5 percent. The pair touched its high at 0.7008, which was the highest peak since September 1st of 2008.


NZD/USD

NZDUSD

Since March, the NZD/USD has been trading in an upward trend channel. At the moment the NZD is remaining on the upper line of the trend channel. The currency pair touched this line for three times and rebounded back in the middle of the trend formation. The MACD is going to cross the signal line from the top, which may indicate a short signal. Therefore, the pair could rebound again and could decrease near to the level of 0.6800.


AUD/JPY

AUDJPY

Since the beginning of August, the AUD/JPY has been moving inside a downward trend channel. After breaking the channel, the market reached the resistance level around 80.00. As you can see, the MACD also signalizes a trend reversal. The market may recover towards the upper line of the bearish trend channel.