- NZD/JPY bears in control on the broader picture, but bulls holding the fort for now.
- Central bank themes could be the next catalyst for the commodity complex.
NZD/JPY has been attracting bears overnight, seeking a break below 68 the figure, but bulls have stepped in again. The Bird has been under tremendous pressure since April yet there seems no let-up in the downside bias and now that the cross had closed below the 2016 lows and the March 2012 highs, the downside still remains compelling.
There is not much going on out there for the NZD nor with respect to the Yen. However, overnight, GlobalDairyTrade auction results were stronger than expected, with the GDT Price Index falling just 0.2% (against expectations of a 1% fall). "Milk fats and skim milk prices declined, but particularly positive for our dairy producers was the lift in whole milk powder prices (+2.1%) to an average price of US$3100/t. This bodes well for a $7+ milk price for the 2019-20 season. Our forecast is currently $7.10/kgMS while Fonterra’s forecast is $6.25 - $7.25," analysts at ANZ Bank noted.
Central Banks come back to the fore
Meanwhile, the market's focus for the rest of the week will be with the Federal Reserve, sparking a theme for central banks in general. The macro picture is likely to reemerge as a driver so long as geopolitical headlines remain subdued - Canadia CPI and EZ PMIs will play their part in the central bank theme as well, but the Federal Open Market Committee minutes and Jackson Hole will be specifically enlightening and could be the next driver to make or break the (Dollar) commodity complex in upcoming sessions for which the Kiwi trades as a proxy, albeit not quite as close as the Aussie.
NZD/JPY levels
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.
Recommended content
Editors’ Picks
AUD/USD: A tough barrier remains around 0.6800
AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by50 bps.
EUR/USD still targets the 2024 peaks around 1.1200
EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.
Gold surrenders gains and drops to weekly lows near $2,550
Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.
Ethereum could rally to $2,817 following Fed's 50 bps rate cut
Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.
UK CPI set to grow at stable 2.2% in August ahead of BoE meeting
The United Kingdom Office for National Statistics will release August Consumer Price Index figures on Wednesday. Inflation, as measured by the CPI, is one of the main factors on which the Bank of England bases its monetary policy decision, meaning the data is considered a major mover of the Pound Sterling.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.