MARKET DEVELOPMENT –AUDUSD and NZDUSD Buoyed as Chinese Yuan Stabilises
DailyFX 2019 FX Trading Forecasts
AUD / NZD: A relief rally across equity markets have benefited the high beta antipodeans as the Chinese Yuan stabilises from yesterday’s plunge. The US have now labelled China as a currency manipulator despite only hitting one criteria (a surplus greater than $20bln with the US). Elsewhere, the PBoC had set a firmer fix overnight helping reassure market participants that the PBoC were not going to let the Chinese Yuan plummet. Eyes will be on the Yuan fix (0215BST), which will likely dictate sentiment throughout the rest of the week.
GBP: Since finding support from 1.21, the Pound has continued to grind higher, making a test of the 1.22 handle. Cross related selling in EURGBP which breached 0.92 to the downside has also aided the Pound throughout the European session. Brexit newsflow continues to remain relatively downbeat, therefore gains may be somewhat limited.
EUR: Following the strongest intra-day gain since late January, the Euro is on the backfoot, failing to find support from the better than expected German industrial orders, which posted the biggest monthly gain in 2yrs.
Source: DailyFX, Thomson Reuters
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WHAT’S DRIVING MARKETS TODAY
- “US Dollar Hits Support, Euro Resistance; DXY, EURUSD Charts & More” by Paul Robinson, Currency Strategist
- “Brexit Latest, GBP/USD Rally Struggles, EUR/GBP Fades Lower” by Nick Cawley, Market Analyst
- “New Zealand Dollar Expected to be Most Volatile Currency With RBNZ Set to Cut Rates” byJustin McQueen, Market Analyst
- “Using FX To Effectively Trade Global Market Themes at IG” by Tyler Yell, CMT , Forex Trading Instructor
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
