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
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
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 continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10CKUR https://t.co/9JVh6BsWa2
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/ZDuee58Abe
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/niJL2W2yXV
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/0rNbbrd58e
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/zPzJAxBJxt
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/uf6KEYTes5
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/gRjdVfbg66
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/mLLGqYUygY
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/HUYJzEkYiT
  • #Gold prices put in a major breakout last month and, so far, buyers have held the line. But a really big Fed meeting is on the calendar for this week. Can Gold bulls hold? Get your market update from @JStanleyFX here: https://t.co/NGRTSfceOW https://t.co/QkSUORIQE2
Nikkei 225 Fall May Precede Wall Street Selloff. AUD, NZD at Risk

Nikkei 225 Fall May Precede Wall Street Selloff. AUD, NZD at Risk

Daniel Dubrovsky, Strategist

Asia Pacific Market Wrap – Nikkei 225, ASX 200, AUD/USD, NZD/USD, Japanese Yen

  • As expected, the Nikkei 225 and other Asia Pacific benchmark stock indexes traded lower
  • Lack of econ data allowed markets to focus on Fed, trade wars and political uncertainty
  • S&P 500 may resume fall, sending AUD and NZD lower. IDR faces a local rate decision

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

As anticipated, Asia Pacific benchmark stock indexes traded aggressively lower following declines from the European and US sessions. The Nikkei 225 declined around 2.22 percent heading into Tuesday’s close, led lower by all of its sectors. This puts it on track for the worst performance in a single day since October 11th and more weakness could be on the way.

Amidst a relatively quiet economic calendar docket, South Korea’s KOSPI, China’s Shanghai Composite and Australia’s ASX 200 found themselves heading about 2.46%, 1.37% and 0.79% lower. This was matched with more gains in US government bond prices, signaling that investors are taking risk off the table and are seeking haven assets to preserve capital. The highly liquid US Dollar thus got a slight boost.

A lackluster offering of data opens the door for markets to focus on relative geopolitical concerns and bigger picture themes. This year that has been tightening global credit conditions, trade wars and political uncertainty. The US tariff rate on $200b in Chinese imports is set to increase from 10% to 25% beginning next year. Meanwhile Brexit, Italian budget and emerging market concerns risk deteriorating sentiment.

Join DailyFX Analyst Dimitri Zabelin as he covers the impact of Brazilian elections on markets this Thursday at 22:00 GMT.

With that in mind, S&P 500 futures are pointing lower as APAC trade is wrapping up for the day. This could mean that the ‘risk off’ trading dynamic will continue. As such, the ‘pro-risk’ Australian and New Zealand Dollars may add more to their declines already seen thus far. Meanwhile the ‘anti-risk’ Japanese Yen is poised to continue making gains against most but the greenback.

AUD/USD is also making more meaningful progress to the downside and has now cleared one of the key support barriers preventing resumption of the dominant downtrend. Meanwhile the Indonesia Rupiah faces potentially critical forward guidance from its associated central bank.

Nikkei 225 Technical Analysis

On a daily chart, the Nikkei 225 has broken under a range of horizontal support dating back to early September. This has exposed 21,851 (August lows) next but positive RSI divergence warns downside momentum is ebbing and may precede a near-term correction. Immediate resistance is a descending trend line from the beginning of October.

Nikkei 225 Daily Chart

Nikkei 225 Fall May Precede Wall Street Selloff. AUD, NZD at Risk

Chart created in TradingView

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