- Overnight Interest Rate Update 02.09.10 Tue, 09 Feb 2010 05:24 GMT
- RICS Survey Hints UK House Prices May Decline as Supply Swells Tue, 09 Feb 2010 04:41 GMT
- UK Retail Sales Growth Worst in 15 Years in January, says BRC Tue, 09 Feb 2010 02:19 GMT
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- Feb, 09 Overnight Interest Rate Update 02.09.10
- Feb, 09 RICS Survey Hints UK House Prices May Decline as Supply Swells
- Feb, 09 UK Retail Sales Growth Worst in 15 Years in January, says BRC
- Feb, 08 Swiss Unemployment Highest Since 1998, Retail Sales Advance 4.7%
- Feb, 08 Overnight Interest Rate Update 02.08.10
- Feb, 05 U.S. Non-Farm Payrolls Disappoint, Jobless Rate Unexpectedly Contracts
- Feb, 05 Overnight Interest Rate 02.05.10
- Feb, 05 Euro Spikes Higher Against Swiss Franc, SNB Action Hinted
- Feb, 04 ECB Says Rates Appropriate, As Inflation To Remain Near 1.0%
- Feb, 04 ECB Says Rates Appropiate As Infaltion To Remain Near 1.0%
- Feb, 04 British Pound Pares Decline as BoE Suspends Asset Purchases, Euro Holds Rate at Record Low
- Feb, 04 Overnight Interest Rate Update 02.04.10
- Feb, 04 Australian Retail Sales Disappoint, Building Permits Rise on Stimulus
- Feb, 03 Overnight Interest Rate Update 02.03.10
- Feb, 02 Overnight Interest Rate Update 02.02.10
- Feb, 02 Australian Business Confidence Falls Most in 11 Months on China Outlook
- Feb, 01 U.S. Manufacturing Unexpectedly Expands at Faster Pace
- Feb, 01 U.K. Mortgage Approvals Unexpectedly Declines, EURGBP Snaps 4-day Decline
- Feb, 01 China Weekly 02.01
- Feb, 01 Overnight Interest Rate Update 02.01.10
The New Zealand dollar halted the two-day decline against the greenback and is the best performing currency on Monday after rising to a high of 0.7367, while the Japanese Yen pared the overnight advance and remains little changed from Friday after moving only 50% of its average true range.
The New Zealand dollar halted the two-day decline against the greenback and is the best performing currency on Monday after rising to a high of 0.7367, and the higher-yielding currency may continue to retrace the sell-off from the previous week as investors raise their appetite for risk. The NZD/USD is 100+pips higher from the open after moving 128% of its ATR however, the overnight rally looks to be losing steam ahead of the 10-Day SMA at 0.7390 as the 30-minute RSI pushes into overbought territory. As a result, we may see the kiwi-dollar fall back ahead of the Asian trade and fill-in the gap from the 100-SMA at 0.7279 as the pair looks to be finding short-term resistance ahead of the 10-Day moving average. At the same time, as the 20-Day SMA (0.7329) looks poised to cross below the 50-Day at 0.7313, the downward trend in the moving averages favors a bearish technical outlook for the NZD/USD, and we may see the pair test the monthly low at 0.7082 for near-term support following the bearish divergence in the daily RSI.
The Japanese yen pared the overnight advance against the reserve currency and remains little changed from Friday after moving only 50% of its average true range, and the exchange rate may continue to push higher throughout the North American session as the RSI bounces back from oversold territory. The USD/JPY slipped to a low of 88.58 during the Asian trade on the back of U.S. dollar weakness, and continued to hold the downward trending channel from end of October, and may see the pair hold below the 10-Day SMA (89.42) throughout the remainder of the month and test the previous month’s low (87.99) for short-term support as the greenback mains the most popular funding currency, next to the Japanese yen. However, as the daily RSI approaches oversold territory, we may see the dollar-yen hold a broad range going into the following year as investors weigh the outlook for future policy.
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To discuss this report contact David Song, Currency Analyst: dsong@fxcm.com
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