We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/MhP7opgk4a
  • Investors in stocks, commodity currencies and energy have been praying for a massive fiscal bazooka to combat the virus effects. It looks like they’re going to get it. Get your market update from @DavidCottleFX here:https://t.co/e2ciGSYftY https://t.co/Udoi5UMJrl
  • The ‘V-shaped’ recovery in USD/JPY just failed to hit its target and is now moving lower again. Important support is now being tested. Get your $USDJPY technical analysis from @nickcawley1 here: https://t.co/koiac0Rxvs https://t.co/CsVsS7PVMV
  • The Australian Dollar has been lifted from its multi-year lows by hopes that global financial authorities can fend off the worst of the #coronavirus‘ effects. Get your $AUDUSD market update from @DavidCottleFX here: https://t.co/GC5pwNbY9S https://t.co/OryobNq7uL
  • Before considering to enter a position, price action must come into contact with the upper or lower channel line at least three times. Learn how to validate a channel here: https://t.co/Rd5hDm7gRo https://t.co/mubPgmDRRY
  • A tidal wave of cash waits to return to virus-battered assets, backstopped by huge stimulus. It is unlikely to deploy until infection slows, whatever the US administration prefers. Get your market update from @DavidCottleFX here: https://t.co/OWOi2HxejD https://t.co/jvMXT7te1h
  • The bullish engulfing candle is one of the forex market’s most clear-cut price action signals for reversals and continuation. Learn more about this price action trading signal here: https://t.co/edEHzyoCJT https://t.co/vHPSW7Vm96
  • It was a big week for GBP/USD as Cable crushed shorts, rallying more than 1,000 pips off of last week’s lows. Get your $GBPUSD technical analysis from @JStanleyFX here: https://t.co/n6vYfe6Gfh https://t.co/zQq74Zzxsv
  • The bull flag pattern is a great pattern to add to a forex trader’s technical arsenal. Explosive moves are often associated with the bull flag. Learn more about the bull flag pattern here: https://t.co/ZNRBvNELeJ https://t.co/CKkWNMLkuw
  • The US Dollar could rise if key ISM, PMI and nonfarm payrolls data causes recession fears to swell and rekindles appetite for the haven-linked Greenback. Get your $USD market update from @ZabelinDimitri here: https://t.co/iTlnxWuSqn https://t.co/brEsDw2a5K
2 US Dollar Themes Unfolding Quietly

2 US Dollar Themes Unfolding Quietly

2013-09-25 17:35:00
Kathy Lien, Technical Strategist
Share:

Amid rather tame trading conditions, the correction in NZDUSD is gaining momentum, and comments from key monetary officials are adding clarity to the ongoing debates about the debt ceiling and tapering.

It’s been a quiet week so far in the foreign exchange market with only secondary economic data released from the US. Today, durable goods orders and new home sales were released, and while both reports can be important, these numbers rarely have a lasting impact on the US dollar (USD).

Durable goods orders rose 0.1% in the month of August, which was stronger than expected, but core durable goods orders fell 0.1%, which was much weaker than the market's forecast for 1% growth.

In fact, there has been very little consistency in the performance of the US dollar today. The greenback may have weakened against the euro (EUR), British pound (GBP), and Japanese yen (JPY) over the past 12 hours, but it has also strengthened against the Australian dollar (AUD) and New Zealand dollar (NZD).

See also: A Big FX Winning Streak That Looks to Be Over

The downtrend in NZDUSD gained momentum after last night's wider-than-expected New Zealand trade deficit. The drop in New Zealand’s manufacturing PMI index signaled the possibility of deterioration in trade activity, but we did not expect the nation to report its largest trade deficit since September 2008.

While the Reserve Bank of New Zealand (RBNZ) could be annoyed by the recent release, it may not give up on its bias to raise rates next year because the widening of the deficit was largely caused by one-off imports of a drilling platform and railway wagons from China.

In contrast, the euro is trading well today thanks to an improvement in German and Italian consumer confidence.

Housing Data, Fed Speak Could Prop up Dollar

US new home sales for August were also released this morning, and the data showed a nice increase, which was largely expected after new home sales plunged in the month of July. With existing home sales growth slowing last month, it will be in the central bank’s best interests to keep purchases of mortgage-backed securities intact, as sustaining a recovery in the housing market has been one of the Fed’s top priorities.

New York Fed President and Federal Open Market Committee (FOMC) voter William Dudley will be speaking again today, and based on last week's comments, he was one of the FOMC members who favored keeping asset purchases unchanged at this month’s meeting.

In a speech earlier this week, Dudley expressed specific concerns about fiscal uncertainties and the growing questions about the debt ceiling and government spending. He did not rule out the possibility of a reduction in asset purchases this year, but downplayed the significance of labor data, which he says masks more modest improvements in the job market. Dudley said changes to quantitative easing (QE) "need to be anchored in an assessment of how the economy is actually performing, how financial conditions are evolving, and how this affects the longer-term outlook and the risks around it."

See also: 6 Doses of Monetary Straight Talk

While it is clear that Fed President Dudley does not support reducing asset purchases now, if Congress manages to reach a deal on the debt ceiling, he could be convinced otherwise come December, and the market is expecting more dovishness from Dudley’s speech today.

By Kathy Lien of BK Asset Management

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.