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
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
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
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
  • Read an article from Reuters about banks sharing deposit information on clients to evaluate extending credit to those with no credit score. With so much liquidity we keep pushing lending down the credit scale. I'm sure someone is already working out an APR with Bill Hwang
  • USDCAD: Since the BoC’s hawkish taper, CAD strength has been dominant with USD/CAD dropping over 4.8% and hitting a six year low. Get your $USDCAD market update from @JMcQueenFX here:https://t.co/aEc5McOPFS https://t.co/FGO4EuxJR5
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.36% 🇨🇭CHF: 0.32% 🇯🇵JPY: 0.12% 🇪🇺EUR: 0.08% 🇬🇧GBP: -0.02% 🇨🇦CAD: -0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/1mjDURi237
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Wall Street: 1.40% US 500: 1.29% Germany 30: 0.27% France 40: 0.19% FTSE 100: -0.54% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/dmtXTwOHYk
  • Heads Up:🇨🇦 BoC Gov Macklem Speech due at 15:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-13
  • Cryptocurrency market a sea of red. Ethereum/Bitcoin spread keeps positive sentiment. Get your market update from @nickcawley1 here:https://t.co/JQrMw98w3V https://t.co/vWwSNBi91L
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Gold: 0.34% Silver: -0.07% Oil - US Crude: -2.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/5xqZi7nDzM
  • Seems we have found the BTD mentality. 15-minute chart of the $SPX. Biggest opening hour rally thus far since March 9th https://t.co/bnzEVDGQTs
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.78%, while traders in GBP/JPY are at opposite extremes with 69.21%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/nWhPrkgMS5
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Gold: 0.18% Silver: -0.49% Oil - US Crude: -2.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/NPv5vwHjXT
Yen May Rise as AUD, NZD Sink. White House Holds on Huawei Licenses

Yen May Rise as AUD, NZD Sink. White House Holds on Huawei Licenses

Daniel Dubrovsky, Strategist

Asia Pacific Market Open Talking Points

  • Japanese Yen may gain next as the Australian, New Zealand Dollar sink
  • US to hold off allowing companies to do business with China's Huawei
  • USD/JPY aiming to resume the dominant downtrend to “flash crash” low

Not sure where the Japanese Yen is heading next? Check out the third quarter fundamental and technical forecast!

AUD, NZD, Brace for Risk Aversion as JPY May Gain

Asia Pacific markets initially had a rosy session to look forward to after the S&P 500 rallied almost 1.9% on Thursday. That was the best day for Wall Street since early June as markets viewed efforts from China to stabilize the Yuan as a sign of de-escalating trade tensions with the United States. However, these hopes are now looking to be short-lived again. The pro-risk Australian and New Zealand Dollars are at risk.

Shortly after Wall Street close, the White House announced that it is holding off on its decision to grant companies licenses in order to resume doing business with China’s Huawei. The company is the nation’s largest provider of telecommunication equipment. This is in response to threats from Beijing to halt importing US agricultural goods.

In addition to the US threat of an extra $300b in Chinese import tariffs come September, the decision on Huawei is another step towards unwinding the trade truce the two countries agreed to at June’s G20 Summit. With that in mind, markets still have to contend with the threat of trade wars clouding the global economic outlook. There is also the risk that the US raises the tariff rate against China from 10% to 25%.

Friday’s Asia Pacific Trading Session

S&P 500 futures are now pointing decidedly lower, threatening upside gap potential in the Nikkei 225. The anti-risk Japanese Yen is also aiming higher. US-China trade tensions and the capital flight that this can trigger also leaves emerging markets vulnerable. The corrective upside moves seen in the MSCI Emerging Markets Index as of late may reverse course, aiming for support just above April 2017 lows.

The pro-risk Australian Dollar is also eyeing commentary from RBA Governor Philip Lowe and then the latest Chinese CPI data. The former can further pressure the currency if the central bank chief adds fuel to near-term rate cut expectations. USD/JPY will also likely focus more on market sentiment as the Yen looks past Japanese second quarter GDP data due to its limited implications for BoJ monetary policy bets.

Japanese Yen Technical Analysis

With that in mind, USD/JPY appears to be making another attempt to resume the dominant downtrend from April as it eyes near-term support at 105.50. Further Yen gains may eventually see USD/JPY retest the January “Flash Crash” low at 104.78. Otherwise, turning higher has resistance as a psychological barrier between 106.78 and 107.21.

USD/JPY Daily Chart

Yen May Rise as AUD, NZD Sink. White House Holds on Huawei Licenses

Chart Created in TradingView

FX Trading Resources

--- Written by Daniel Dubrovsky, 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