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18 May 2015
Kiwi weakest in Asia, a data-thin EUR calendar
FXStreet (Mumbai) - The New Zealand dollar emerged the biggest loser in a quiet Asia session, followed by its OZ neighbor while the dollar-yen pair staged a solid comeback following the recent weakness, despite the latest upbeat Japan macro data release.
Key headlines in Asia
NZ Govt introduces capital gains tax
RBA Lowe: There is still scope to lower rates
Japan Machinery Orders (MoM) came in at 2.9%, above forecasts (1.8%) in March
Key events ahead for the week - Rabobank
Dominating themes in Asia - centered on JPY, AUD, NZD
A low-key affair in Asia, with the Japanese markets lifted on weaker yen and also on above estimates Japanese core machinery orders data. USD/JPY remains the top gainer mainly driven by a short-covering rally after Friday’s slump supported by a slew of downbeat US fundamentals.
On the losing end, both the Antipodeans remains heavily sold-off with the Kiwi losing the most. The NZD/USD pair trades close to 0.74 handle after the NZ government announced new policies to cool the overheated housing markets over the weekend spurred increased RBNZ rate cut bets.
While the Aussie lost ground after RBA Deputy Governor Philip Lowe admitted on Monday that the bank still defends the view of Australian dollar at a lower level, and there is further scope for lower exchange rate if needed. Moreover, both the commodity currency remains weighed by weak Chinese home prices data.
Heading into Europe - centered on EUR, GBP
There is nothing much to report in the session ahead, as the EUR calendar remains fairly light at the start of this week. Although we have 2nd tier data in Italian trade figures and German Buba Monthly report.
While, few Central bankers are expected to deliver speeches later in the day which may provide some fresh cues in the fx space. Chicago Federal Reserve Bank President Charles Evans, a voting member of theFOMC this year, Riksbank Governor Stefan Ingves and European Central Bank (ECB) Executive Board member Yves Mersch are scheduled to speak today.
More so, the UK Parliament will meet for the first time since Prime Minister David Cameron’s Conservative Party won the May 7 general election.
EUR, GBP Technicals
Trade Strategy Team at TD Securities notes, "In a broader sense, EURUSD gains through retracement resistance at 1.1296 (weekly close basis) support the impression that EUR risks are tilting higher; how much higher remains to be seen. Trend resistance at 1.1534 is a big test for spot but gains through here would likely help pull longer-term oscillators to EUR-supportive territory and put a rebound to the 1.18/1.22 range on the radar."
Valeria Bednarik, chief analyst at FXStreet explains, GBP/USD: " "Technically and according to the daily chart, the upward potential remains intact as the technical indicators have turned lower in extreme overbought levels, but are not yet suggesting additional declines. Shorter term, however, the 4 hours chart shows that the price is breaking through its 20 SMA for the first time since May 5th, whilst the Momentum indicator is crossing the 100 level towards the downside and the RSI indicator heads strongly south around 56, all of which supports another short term leg lower towards the strong support around 1.5660."
Key headlines in Asia
NZ Govt introduces capital gains tax
RBA Lowe: There is still scope to lower rates
Japan Machinery Orders (MoM) came in at 2.9%, above forecasts (1.8%) in March
Key events ahead for the week - Rabobank
Dominating themes in Asia - centered on JPY, AUD, NZD
A low-key affair in Asia, with the Japanese markets lifted on weaker yen and also on above estimates Japanese core machinery orders data. USD/JPY remains the top gainer mainly driven by a short-covering rally after Friday’s slump supported by a slew of downbeat US fundamentals.
On the losing end, both the Antipodeans remains heavily sold-off with the Kiwi losing the most. The NZD/USD pair trades close to 0.74 handle after the NZ government announced new policies to cool the overheated housing markets over the weekend spurred increased RBNZ rate cut bets.
While the Aussie lost ground after RBA Deputy Governor Philip Lowe admitted on Monday that the bank still defends the view of Australian dollar at a lower level, and there is further scope for lower exchange rate if needed. Moreover, both the commodity currency remains weighed by weak Chinese home prices data.
Heading into Europe - centered on EUR, GBP
There is nothing much to report in the session ahead, as the EUR calendar remains fairly light at the start of this week. Although we have 2nd tier data in Italian trade figures and German Buba Monthly report.
While, few Central bankers are expected to deliver speeches later in the day which may provide some fresh cues in the fx space. Chicago Federal Reserve Bank President Charles Evans, a voting member of theFOMC this year, Riksbank Governor Stefan Ingves and European Central Bank (ECB) Executive Board member Yves Mersch are scheduled to speak today.
More so, the UK Parliament will meet for the first time since Prime Minister David Cameron’s Conservative Party won the May 7 general election.
EUR, GBP Technicals
Trade Strategy Team at TD Securities notes, "In a broader sense, EURUSD gains through retracement resistance at 1.1296 (weekly close basis) support the impression that EUR risks are tilting higher; how much higher remains to be seen. Trend resistance at 1.1534 is a big test for spot but gains through here would likely help pull longer-term oscillators to EUR-supportive territory and put a rebound to the 1.18/1.22 range on the radar."
Valeria Bednarik, chief analyst at FXStreet explains, GBP/USD: " "Technically and according to the daily chart, the upward potential remains intact as the technical indicators have turned lower in extreme overbought levels, but are not yet suggesting additional declines. Shorter term, however, the 4 hours chart shows that the price is breaking through its 20 SMA for the first time since May 5th, whilst the Momentum indicator is crossing the 100 level towards the downside and the RSI indicator heads strongly south around 56, all of which supports another short term leg lower towards the strong support around 1.5660."