Forex Today: USD rebound caps Kiwi’s RBNZ-led rally, focus on ECB-speak, Trump


Broad-based US dollar comeback was the main underlying theme in Asia this Wednesday, as traders looked past the US President Trump’s impeachment talks and cheered fresh US-China trade optimism. The Treasury yields recovered in tandem with the US equity futures but the Asian stocks slipped, having tracked the declines on the Wall Street overnight. Gold stalled its recent upside momentum and consolidated below $ 1535 levels.   

Amongst the G10 currencies, the Kiwi witnessed good two-way trades after RBNZ’s status-quo powered the bulls to 0.6350 before reversing to near 0.6320 region. Likewise, the AUD/USD pair also faded its brief recovery above the 0.68 handle. The Yen emerged the weakest across the board, as USD/JPY extended the bounce to near 107.40 region on trade optimism. The Swiss Franc and Canadian dollar also lost ground vs. the buck, as the Loonie was also weighed by weaker oil prices.

Meanwhile, the EUR/USD pair slipped below the 1.1000 level heading into a quiet EUR calendar while Cable faded Tuesday’s rally and now targets 1.2450 ahead of the House of Commons session.   

Main Topics in Asia

US-China trade updates

Chinese diplomat Wang Yi: US should not try and change China

China to buy more US farm products in latest goodwill gesture

Sources: China said to have made enquiries about purchasing US pork

Other key headlines

US House Speaker Pelosi: House to open a formal Trump impeachment enquiry

Iranian President Rouhani: US President Trump removed trust by leaving pact

NZ Trade Balance: NZD -1565m (vs expected -1400m)

Bank Of Japan Minutes (Jul 29-30)

Macron: Believe the conditions are in place for a rapid return to negotiations between Iran and US

China's Beigi Book: Manufacturing the prime cause of economic weakness in 3Q

Goldman Sachs: US safest place for capital - Bloomberg

Saudi Aramco to update information on expected timeline of repairs by Sept 30

RBNZ leaves rates unchanged at 1.00%, Kiwi jumps over 20 pips

Key Focus Ahead

There is nothing much of note in the European session ahead, in terms of the economic data, and therefore, the second-liner UK BBA Mortgage Approvals and CBI Distributive Realized Trades Survey will be eyed for fresh trading incentives ahead of the House of Commons session. The UK Parliament reconvenes on Wednesday after the UK Supreme Court found the UK PM Johnson guilty of suspending the Parliament unlawfully. Meanwhile, the speech by the European Central Bank (ECB) Governing Council member Coeure at 0700 GMT will remain in focus.  

In the NA session, the Swiss National Bank (SNB) will publish its Quarterly Bulletin for Q3 ahead of the US New Homes Sales data due at 1400 GMT. The Energy Information Administration (EIA) weekly Crude Oil Stocks data will be eagerly awaited for fresh oil trades.

Further, the geopolitical and trade developments could continue to emerge the main market motor.

EUR/USD retraces to 50-hour MA support, focus on ECB speak

EUR/USD has fallen back to the 50-hour moving average (MA) support ahead of Europe open and could suffer deeper losses on dovish ECB speak. A strong bounce could be seen if ECB's Coeure confirms his opposition to the ECB's latest QE program.

GBP/USD fails to hold on to recovery gains ahead of the House of Commons session

With the fading optimism after the British Supreme Court judgment combined with overall strength of the greenback, GBP/USD drops towards 1.2450 while heading into the London open on Wednesday.

Gold technical analysis: Bulls look to 1,590 as the 127.2% Fibo target

Gold bulls have the 1,550 level in sight, which guards territories towards 1,590 as the 127.2% Fibo target. The price has been building a positive trend above the 21-day moving average.

US Second Quarter Final GDP Revision Preview: The consumer is cued

Annualized GDP is the second quarter predicted to be unchanged at 2.0%. Consumer spending driving US growth. Business investment curtailed by trade concerns.

 

GMT
Event
Vol.
Actual
Consensus
Previous
Monday, Sep 23
24h
 
 
Wednesday, Sep 25
07:00
 
 
07:00
 
 
08:00
 
 
-37.5
08:30
 
 
43.342K
n/a
 
 
-0.7%
10:00
 
-25%
-49%
11:00
 
 
-0.1%
13:00
 
 
14:00
 
0.660M
0.635M
14:00
 
3.9%
-12.8%
14:30
 
-6.501M
1.058M
17:00
 
 
1.365%
Thursday, Sep 26
06:00
 
9.7
9.7
08:00
 
3.4%
3.4%
08:00
 
 
4.8%
08:00
 
5.0%
5.2%
08:00
 
 
12:30
 
212K
208K
12:30
 
 
212.25K
12:30
 
1.672M
1.661M
12:30
 
2.4%
2.5%
12:30
 
2%
2%
12:30
 
0.3%
0.2%
12:30
 
$-77.327B
$-72.340B
12:30
 
0.4%
2.3%

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 

EUR/USD News

GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 

GBP/USD News

XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more

Forex MAJORS

Cryptocurrencies

Signatures