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
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
Mixed
Wall Street
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
Gold
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
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • The #Euro has dropped through support guiding it higher from late-March lows, suggesting that the end of a corrective rebound has given way to downtrend resumption. Get your $EURUSD market update from @IlyaSpivak here: https://t.co/gpKowYNmGi https://t.co/CY7RuZf91s
  • What are a few of the common trading mistakes made by traders? Find out from @WVenketas here: https://t.co/Q3sPmP2rya #tradingstyle https://t.co/ayjehPGEeT
  • $USDCAD came close to taking out the 17-year-high just a few weeks ago, but this was followed by an aggressive pullback down below the 1.4000 handle.Get your USD/CAD technical analysis from @JStanleyFX here: https://t.co/aWmL2rlWzG https://t.co/cauVFdBxsd
  • Follow up: S&P affirms 🇩🇪Germany's AAA/A-1+ rating, outlook stable (BBG). As for PMI data, it painted a darker picture⬇️ Final print for services: 31.7, preliminary: 34.5 Final print for composite: 35.0, preliminary: 37.2 https://t.co/x2SESwo0zr
  • RT @NorthmanTrader: You need to click to expand to see this chart via @byHeatherLong https://t.co/tXd4T45FqS
  • #Dow Jones: The blue-chip index lags the S&P 500 and #Nasdaq 100 as Boeing continues to weigh on the Industrial Average. Get your market update from @PeterHanksFX here: https://t.co/Z495djPG07 https://t.co/3rTF8I3KBg
  • $USDMXN: A breakout above 25.44 will get it to a new highs. Get your USD/MXN market update from @PaulRobinsonFX here: https://t.co/KFRLmtBZsv https://t.co/Lo3bvThH0w
  • #Gold closed above the 50-day average providing a bullish signal. Get your $XAUUSD technical analysis from @malkudsi here:https://t.co/h3yVqIxwVc $gld https://t.co/0xqiCWFaml
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: -0.31% 🇨🇦CAD: -0.43% 🇪🇺EUR: -0.48% 🇳🇿NZD: -1.00% 🇬🇧GBP: -1.03% 🇦🇺AUD: -1.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ST3oKR8Kyt
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.81% Gold: 0.37% Silver: -0.36% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/tCzfLiJU9V
NAFTA Uncertainty Surpasses Fed, RBNZ Volatility. USD/CAD Reverses

NAFTA Uncertainty Surpasses Fed, RBNZ Volatility. USD/CAD Reverses

2018-09-26 23:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open – NAFTA, Fed, RBNZ, US Dollar, NZD/USD, USD/CAD

  • US and New Zealand Dollars saw volatility on Fed and RBNZ rate announcements
  • USD/CAD held on to directional bias on NAFTA uncertainty as it reversed higher
  • Asia Pacific shares may decline after central banks highlighted fears on trade wars

See our study on the history of trade wars to learn how it might influence financial markets!

The US Dollar showed a volatile reaction after the Fed raised interest rates as expected, initially falling on an underwhelming status quo update. Afterwards, the press conference with Chair Jerome Powell sparked mild risk aversion as the S&P 500 declined and the greenback recovered. Mr. Powell brought up concerns about widespread tariffs for the global economy and their adverse impact in the long run.

Meanwhile the New Zealand Dollar initially rallied after the RBNZ left rates unchanged at 1.75% as expected and highlighted that they are seeing signs of core inflation picking up. Gains were somewhat paired though as the central bank brought up that downside risks to their growth outlook still remain. In their statement, the RBNZ also highlighted that trade barriers could undermine global growth. We still remain long AUD/NZD though given that the RBA is relatively more hawkish than the RBNZ.

One currency that was holding on to directional bias was the Canadian Dollar and it depreciated across the board. The deadline for Canada to join the new NAFTA trade pact between the US and Mexico is fast approaching. US Trade Representative Robert Lighthizer said on Wednesday that the country has until the end of this month to do so.

To add more pressure to Canada and CAD, US President Donald Trump announced that he rejected a one-on-one meeting with PM Justin Trudeau. Mr. Trump then added that he is “very unhappy” with Canada’s negotiation side and that if they don’t make a deal that “we are taxing cars”. Although shortly after, reports crossed the wires that Mr. Trudeau did not request a meeting with the US President.

Thursday’s Asia Pacific trading session is lacking key economic event risk apart from interest rate decisions from the Philippines and Indonesia later in the day. Amidst the selloff in emerging markets which has in part been due to tightening global credit conditions and trade wars, currencies from developing nations have been under serious pressure.

This is causing some of their central banks to fight back hawkishly and we may see gains from USD/IDR and USD/PHP. But those may be in vain if APAC shares decline today given the last minute pullback in the S&P 500 as the Fed was concerned about trade wars. Those risks seem to have been somewhat increased now that Canada is facing pressure. Trump is also hosting trade talks with Japan PM Shinzo Abe.

USD/CAD Technical Analysis

USD/CAD prices rose the most in a single day (+0.70%) since August 10th. The pair has also broken above a near-term descending resistance line from early September. With more confirmation, this opens the door to retesting the January 2018 line followed by 0.1.3225. On the other hand, near-term support is the 38.2% Fibonacci retracement at 1.3013.

USD/CAD Daily Chart

NAFTA Uncertainty Surpasses Fed, RBNZ Volatility. USD/CAD Reverses

Chart created in TradingView

US Trading Session

NAFTA Uncertainty Surpasses Fed, RBNZ Volatility. USD/CAD Reverses

Asia Pacific Trading Session

NAFTA Uncertainty Surpasses Fed, RBNZ Volatility. USD/CAD Reverses

** All times listed in GMT. See the full economic calendar here

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

News & Analysis at your fingertips.