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
Bearish
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
Bullish
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Asia AM Digest: USD Tumbles After Fed Hike, NZD Unhurt By RBNZ

Asia AM Digest: USD Tumbles After Fed Hike, NZD Unhurt By RBNZ

2018-03-21 23:30:00
DailyFX Research,
Share:

To get the Asia AM Digest every day, SIGN UP HERE

The US Dollar depreciated on Wednesday, and it was largely thanks to the Fed monetary policy announcement and the news conference with Chair Jerome Powell. There, the central bank raised rates to a range of 1.50 - 1.75% as expected. However, what seemed to disappoint the markets was that the near-term policy outlook did not make room for a fourth hike.

Earlier in the day, the Canadian Dollar gained on news that the Trump administration is planning to drop a condition for vehicle imports from Canada and Mexico. Discussed during last week’s NAFTA meeting, the US agreed to let go of the requirement that auto exports from those two countries must contain at least 50% US content.

Just about halfway into Wednesday’s session, the anti-risk Japanese Yen gained while stocks fell when China was reported planning countermeasures against US tariffs. The British Pound also outperformed, helped by a strong local employment report. There, the UK added twice the amount of jobs than expected at +168,000 in January.

Finally, towards the end of the trading day, the New Zealand Dollar held its ground despite the RBNZ hinting that a rate hike by 2019 is unlikely. There, the markets appeared to still be digesting the aftermath of the FOMC meeting. With that in mind, NZD/USD’s downtrend still remains intact.

Looking ahead, DailyFX Analyst David Cottle will begin covering Thursday’s Australian jobs report which is due soon at 00:15 GMT. Join the session here to find out how the data impacts the Australian Dollar in the near-term and medium-term.

DailyFX Economic Calendar: Asia Pacific (all times in GMT)

Asia AM Digest: USD Tumbles After Fed Hike, NZD Unhurt By RBNZ

DailyFX Webinar CalendarCLICK HERE to register (all times in GMT)

Asia AM Digest: USD Tumbles After Fed Hike, NZD Unhurt By RBNZAsia AM Digest: USD Tumbles After Fed Hike, NZD Unhurt By RBNZAsia AM Digest: USD Tumbles After Fed Hike, NZD Unhurt By RBNZ

IG Client Sentiment Index Chart of the Day: USD/JPY

Asia AM Digest: USD Tumbles After Fed Hike, NZD Unhurt By RBNZ

CLICK HERE to learn more about the IG Client Sentiment Index

Retail trader data shows 73.9% of USD/JPY traders are net-long with the ratio of traders long to short at 2.82 to 1. In fact, traders have remained net-long since Dec 29 when USD/JPY traded near 112.39; price has moved 5.4% lower since then. The number of traders net-long is 3.3% higher than yesterday and 6.0% higher from last week, while the number of traders net-short is 1.7% lower than yesterday and 8.9% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USD/JPY prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USD/JPY-bearish contrarian trading bias.

Five Things Traders are Reading:

  1. NZD/USD Downtrend Intact as RBNZ Holds Rates, Downgrades CPI View by Daniel Dubrovsky, Junior Analyst
  2. US Dollar Whipsaws Around March FOMC Decision - No Direction by Christopher Vecchio, Senior Currency Strategist
  3. Yen Strength May Continue As Traders Are Net-Long by the DailyFX Research Team
  4. USD/CAD Rally Reverses at Critical Resistance Ahead of Canada CPIby Michael Boutros, Currency Strategist
  5. Bitcoin, Ripple, Litecoin - Updated Charts and Analysis | Webinarby Nick Cawley, Analyst

To get the Asia AM Digest every day, sign up here

To get the US AM Digest every day, sign up here

To get both reports daily, sign up here

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

DISCLOSURES