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.

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
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.01% US 500: -0.01% FTSE 100: -0.42% Germany 30: -0.43% France 40: -0.49% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/hHbUxemSVz
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here: https://t.co/AfAhmIoVZv https://t.co/MR33o8KmJM
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/NNR3IO1gZ7
  • $NDX extends intraday losses as fears over rising yields continue to haunt high-flying equities https://t.co/RswgSX3Rk6
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.16% Gold: -1.47% Silver: -2.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/GVZ4EpYejd
  • This smells like a head-and-shoulders pattern from the Nasdaq 100 ($NDX) but we don't see the same picture from the S&P 500, Dow or Russell 2000 https://t.co/GekQLeiCEg
  • Lot's of things down today, but know what isn't? Yup, longer-term #Treasury yields An average of the 10Y and 30Y having best day in about a week = portfolio rebalancing play still front and center Fed's Evans expressed little concern about yields https://t.co/tmqCSHTnIG https://t.co/MqUumhMNxI
  • - Non-labor input costs rose moderately, particularly steel and lumber prices - Rising costs attributed to strong demand and supply chain issues - Several districts anticipate modest price increases over the next several months
  • - Commercial real estate continues to struggle, particularly offices, retail, and hotels - Low mortgage rates spurred additional demand for homes - Financial institutions reported lower loan volumes, along with lower delinquency rates and higher deposit levels
  • - Economic activity expanded modestly in most districts - Growth prospects still hampered by lingering virus fears -Hotel & leisure sectors still lagging, but showing signs of life
New Zealand Dollar Hit on Rising US Yields, Regulation Risks. More to Go?

New Zealand Dollar Hit on Rising US Yields, Regulation Risks. More to Go?

Thomas Westwater, Analyst

Rising Treasury Yields, Technology Regulatory Risks, NZD/USD - Talking Points

  • Wall Street dragged lower as investors move out of technology stocks
  • Political turbulence has markets fearing increased regulations on social media
  • The New Zealand Dollar moved lower on a strong USD, rising Treasury yields
Top Trading Opportunities in 2021
Top Trading Opportunities in 2021
Recommended by Thomas Westwater
Get Your Free Top Trading Opportunities Forecast
Get My Guide

Wall Street moved lower during Monday’s US trading session as investors reevaluate government regulatory risks to technology stocks following last week’s chaos on Capitol Hill. The tech-heavy Nasdaq Composite led the move lower with a 1.25% drop. The S&P 500, Dow Jones, and Russell 2000 also sold off with losses of 0.66%, 0.29%, and 0.03%, respectively.

Investors are mulling over future regulator actions from government agencies against technology companies. Twitter dropped over 6% following the company’s suspension of President Trump’s account. Many US lawmakers have voiced support for increasing regulation on social media platforms, a move that now appears to have more backing than ever.

Investors also moved away from US government bonds, extending last week’s selloff with the 10-year yield rising to 1.150%, a new multi-month high. The move is likely reflective of the incoming Biden administration’s higher chances for increased fiscal stimulus following the runoff Georgia Senate elections last week. Traditionally, bonds move inversely with equities, but markets are betting on a flood of new Treasury issuances to fund future stimulus efforts.

Nasdaq-100, 10-Year Treasury Yield, US Dollar – 30-Min Chart

Treasury Yields vs dollar

Chart created with TradingView

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Thomas Westwater
Improve your trading with IG Client Sentiment Data
Get My Guide

Tuesday’s Asia-Pacific Outlook

The markets may remain in risk-off mode in the Asia-Pacific session, driven mostly by the rise in US bond yields. The US Dollar is also benefiting from the moves seen in the rates markets, with the DXY index climbing above the 90.5 handle for the first since December. A stronger Greenback typically puts pressure on non-US equities.

Commodity prices are also under pressure thanks to the rising USD. Gold, silver, and crude oil prices fell Monday, with XAU/USD trading below 1850.00, and XAG/USD just below the 25.00 handle. After several days of declines, gold and silver prices may see some relief ahead, but any significant bounce is unlikely without an underlying shift in the trend of Treasury yields.

The DailyFX Economic Calendar shows Japan is slated to release its Eco Watchers Survey for December. India will also see industrial production and inflation data cross the wires. Economists expect the former to drop 0.4% YoY. If the outcome prints better than anticipated, commodities like copper may rise.

NZD/USD Technical Outlook:

The New Zealand Dollar dropped over 1% against the US Dollar on Monday, with NZD/USD slicing below the psychologically important 0.7200 level. Prices appear to be finding some support at the 50% pseudo-Fibonacci retracement level from the late December low – January high. The MACD histogram plotting back to its zero line, which may hint at easing downside momentum.

NZD/USD Four-Hour Chart

NZDUSD Four hour chart

Chart created with TradingView

NZD/USD Trading Resources:

--- Written by Thomas Westwater, Analyst for DailyFX.com

To contact Thomas, use the comments section below or @FxWestwater on Twitter

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

DISCLOSURES