Good morning from beautiful Hamburg and welcome to our first Daily FX Report of the week. We are looking curios on the EUR/USD if last week winning streak will continue or not. However, we wish you a good start into your new week and successful trading.
Market review
In the early Tokyo trading-session the EUR/USD rose near to its highest level this year, but gave up its gains during the course of the day. The USD and the JPY strengthened versus the EUR on speculation trade protectionism between the U.S. and China will increase and boosting demand for the relative safety of the two currencies, after the U.S. government announced a plan to collect a punitive tariff on imported Chinese car tires. The U.S. government’s auto tradein program probably lifted retail sales in August to their biggest gain in more than three years and boosted factory orders, economists said before reports may show this week. The USD/JPY fell towards a seven-month high because of some rumors which are saying that Japanese exporters will bring overseas earnings back home. The NZD/USD weakened for 1.3 %, the most within the last two weeks, after a report showed an unexpected 0.5 % drop in the national retail sales. Also the AUD declined from its strongest level since August 2008 as commodities prices fell, more than the half of the nation exports are accounted in commodities.
NZD/JPY
After the NZD/JPY touched at the beginning of September its low at 61.72, it seems like a trend reversal. Though the resistance around the 64.67 level couldn’t cross, the Bollinger Bands contracted as a bottleneck and led the bears back into the market. Now it remains to be seen if the support at 63.04. may stop the downward movement, if not we have allow for further declines in NZD near to the 61.72 support.
GBP/AUD
The currency pair has been trading in a bearish trend-channel since 19th of August. The GBP/AUD rose for the second time near to the upper trend-line and tried to cross the resistance. But the MA Oscillator may indicate that the GBP/AUD won’t be leaving its long-term bearish trend but rather weaken.
