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
Mixed
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Mixed
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
Bearish
More View more
Real Time News
  • $EURUSD chart positioning hints the Euro may be running out of steam following a spirited recovery but sentiment studies continue to argue for the upside.Get your EUR/USD market update from @IlyaSpivak here:https://t.co/zp2oz1G2QZ https://t.co/YsxURDW4aT
  • Frankly, I'm surprised the 'equity market related economic uncertainty index' the Fed measures isn't higher. Apologies for using the Wilshire 5000. They don't have significant SPX or Dow historical https://t.co/CioVpmmdv9
  • Market snapshot: #NZD up over 0.5% vs G10 FX heading into Asia's Tuesday trading session [delayed].
  • 🇳🇿 NZD Building Permits (MoM) (FEB), Actual: 4.7% Expected: N/A Previous: -2.0% https://www.dailyfx.com/economic-calendar#2020-03-30
  • Heads Up:🇳🇿 NZD Building Permits (MoM) (FEB) due at 21:45 GMT (15min), Actual: N/A Expected: N/A Previous: -2.0% https://www.dailyfx.com/economic-calendar#2020-03-30
  • USTR Lighthizer says G20 should stay focused on pandemic, not try to use it to push other agendas in trade or elsewhere #Tradewar
  • In a positive development, the S&P 500 did not hit limit down after this week’s open for US equity futures. Get your #S&P500 technical analysis from @JStanleyFX here: https://t.co/7LDq88mYPE https://t.co/O6njknUzvV
  • Just launched - a major face lift to the @DailyFX education section 👇 https://t.co/i0PDKbWip3
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.25% 🇯🇵JPY: 0.14% 🇬🇧GBP: -0.26% 🇨🇭CHF: -0.70% 🇪🇺EUR: -0.81% 🇨🇦CAD: -1.25% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/TTILCrZCAZ
  • President Trump announces White House news conference at 5:00 PM Eastern
Forex: Aussie, NZ Dollars Sink as China Warns About Credit Risks

Forex: Aussie, NZ Dollars Sink as China Warns About Credit Risks

2014-01-24 05:25:00
Ilya Spivak, Head Strategist, APAC
Share:

Talking Points:

  • US Dollar Corrected Higher Overnight After Falling Most in Two Weeks
  • Aussie, NZ Dollars Sink as China Warns About Coal Industry Credit Risks
  • Comments from ECB’s Draghi, BOE’s Carney in Focus into the Weekend

A lull in high-profile event risk put major currencies into consolidation mode in overnight trade. The US Dollar corrected cautiously higher as markets digested the aggressive selloff played out over the preceding 24 hours. The benchmark currency slumped 0.4 percent against its leading counterparts yesterday, marking the largest daily drop in two weeks.

The Australian and New Zealand Dollar underperformed after China issued a warning about credit risks in the coal industry. The East Asian giant is Australia and New Zealand’s largest trading partner and instability there threatens the outlook for export demand. Needless to say, this bodes ill for two countries’ economic growth profile and monetary policy expectations.

The economic data docket is relatively quiet through the end of the trading week, putting the spotlight on speeches from Bank of England Governor Mark Carney and ECB President Mario Draghi at the World Economic Forum in Davos. Investors will comb through Carney’s remarks for clues about a possible revision to the BOE’s forward-guidance framework after the UK jobless rate dropped to within a hair of the 7.0 percent target level. Meanwhile, Draghi’s speech will be evaluated for rhetoric pointing to Eurozone deflation risks and possible policy steps the ECB could take to counter them.

New to FX? START HERE!

Asia Session

GMT

CCY

EVENT

ACT

EXP

PREV

2:00

NZD

Credit Card Spending (MoM) (DEC)

-1.2%

-

3.5%

2:00

NZD

Credit Card Spending (YoY) (DEC)

4.7%

-

6.9%

European Session

GMT

CCY

EVENT

EXP/ACT

PREV

IMPACT

9:00

EUR

Italy Retail Sales (MoM) (NOV)

0.0%

-0.1%

Low

9:00

EUR

Italy Retail Sales (YoY) (NOV)

-

-1.6%

Low

9:30

GBP

BBA Loans for House Purchase (DEC)

47300

45044

Low

12:05

GBP

BOE’s Carney Speaks at World Econ Forum

-

-

Medium

17:00

EUR

ECB’s Draghi Speaks at World Econ Forum

-

-

Medium

Critical Levels

CCY

Supp 3

Supp 2

Supp 1

Pivot Point

Res 1

Res 2

Res 3

EUR/USD

1.3305

1.3473

1.3585

1.3641

1.3753

1.3809

1.3977

GBP/USD

1.6440

1.6526

1.6582

1.6612

1.6668

1.6698

1.6784

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

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

DISCLOSURES

News & Analysis at your fingertips.