News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Bullish
Gold
Bearish
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
More View more
Real Time News
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/6NLFoLgfs0
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.18% 🇯🇵JPY: 0.10% 🇪🇺EUR: 0.10% 🇨🇦CAD: 0.09% 🇬🇧GBP: 0.02% 🇨🇭CHF: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/GIHMI8cSUG
  • 🇪🇸 GDP Growth Rate QoQ Final (Q1) Actual: -0.4% Expected: -0.5% Previous: 0.0% https://www.dailyfx.com/economic-calendar#2021-06-24
  • 🇪🇸 GDP Growth Rate YoY Final (Q1) Actual: -4.2% Expected: -4.3% Previous: -8.9% https://www.dailyfx.com/economic-calendar#2021-06-24
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: France 40: 0.37% Wall Street: 0.29% Germany 30: 0.28% US 500: 0.21% FTSE 100: 0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/mQrUIe36of
  • 🇫🇷 Business Confidence (JUN) Actual: 107 Expected: 109 Previous: 107 https://www.dailyfx.com/economic-calendar#2021-06-24
  • Heads Up:🇪🇸 GDP Growth Rate QoQ Final (Q1) due at 07:00 GMT (15min) Expected: -0.5% Previous: 0.0% https://www.dailyfx.com/economic-calendar#2021-06-24
  • Heads Up:🇪🇸 GDP Growth Rate YoY Final (Q1) due at 07:00 GMT (15min) Expected: -4.3% Previous: -8.9% https://www.dailyfx.com/economic-calendar#2021-06-24
  • Heads Up:🇫🇷 Business Confidence (JUN) due at 06:45 GMT (15min) Expected: 109 Previous: 107 https://www.dailyfx.com/economic-calendar#2021-06-24
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/FMNgFqNlSI
NZD/USD Downtrend Resumes on Fed as Asia Markets Brace, JPY May Gain

NZD/USD Downtrend Resumes on Fed as Asia Markets Brace, JPY May Gain

Daniel Dubrovsky, Strategist

Asia Pacific Market Open Talking Points

  • Neutral Fed undermines dovish bets as S&P 500 sinks, US Dollar gains
  • NZD/USD downtrend may be resuming in well-defined falling channel
  • Asia Pacific markets bracing for potential risk aversion, Yen may rise

Trade all the major global economic data live as it populates in the economic calendar and follow the live coverage for key events listed in the DailyFX Webinars. We’d love to have you along.

FX News Wednesday

The initial reaction to the FOMC monetary policy announcement took its toll on the US Dollar. Markets focused on an unexpected cut in the interest rate on excess reserves as every other setting was left unchanged. But things soon quickly turned around 30 minutes later once Fed Chair Jerome Powell held his press conference.

Overall, Mr Powell delivered a neutral and balanced tone as he mentioned that policymakers ‘don’t see a strong case for a rate move either way’. Comments on weaker inflation were offset by confidence that the economy is continuing on a healthy path. More importantly, external risks seemed to have cooled as he noted improvements in Chinese and European data with Brexit concerns having been subsided.

At that moment, the US Dollar made a U-turn as it climbed with government bond yields. The S&P 500 then tumbled, experiencing its worst day in almost 6 weeks. It was not that there was an increase in Fed rate hike bets. It was that exceptionally dovish expectations were cooled, as anticipated. Fed funds futures now show a 55% probability of a cut by year-end, down from 67% yesterday.

NZD/USD Technical Analysis

One of the worst-performing currencies on Wednesday was the New Zealand Dollar, which was already weighed down by dismal employment data. On the daily chart below, NZD/USD aimed lower after testing descending channel resistance. With its downtrend now further solidified, it is eyeing near-term support at 0.6592 which if cleared, opens the door to October lows.

NZD/USD Daily Chart

NZD/USD Downtrend Resumes on Fed as Asia Markets Brace, JPY May Gain

Chart Created in TradingView

The Canadian Dollar had an overall mixed day with the day’s focus on the Fed. However, after Powell’s press conference, Bank of Canada’s Governor Stephen Poloz had another speech after the one from yesterday boosted the Loonie. He reiterated much of Tuesday’s commentary, saying that if headwinds dissipate that rates would naturally rise. This may boost CAD down the road as forecasted in my top trading opportunities for this year.

Thursday’s Asia Pacific Trading Session

Once again the Asia Pacific economic calendar docket is thin, placing the focus for currencies on risk trends. S&P 500 futures are pointing lower, hinting at weakness in equities to come after most regional bourses were offline for a holiday yesterday. Risk aversion could permeate throughout markets after the Fed and boost the anti-risk Japanese Yen. This may come at the expense of the sentiment-geared Australian and New Zealand Dollars.

FX Trading Resources

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES