Tag Archives: education

Risk-On & Retail Sales Sends AUDUSD to 4-Month Highs

DailyFX.com –

Risk-On & Retail Sales Sends AUDUSD to 4-Month HighsRisk-On & Retail Sales Sends AUDUSD to 4-Month Highs

Fundamental Forecast for the Australian Dollar: Neutral

  • Uneven GDP Points to Uncertainty Ahead for Australia’s Economy
  • Less dovish RBA and on balance better data flow helping AUD
  • Identify Critical Turning Points for the Australian Dollar with DailyFX SSI

The Australian Dollar peaked over the October 12th high on Friday. The risk-on sentiment as displayed by the SPX500 back near the 2,100 level and a Reserve Bank of Australian that isn’t looking to talk down the currency like they have in the past has provided a consistent bid under the Australian Dollar. Australia’s currency strengthened most aggressively against the Japanese Yen, Canadian Dollar and US Dollar last week finishing higher by 2% across the board. Not only was AUD benefitted from Economic data in the form of retail sales that came in slightly better than expected at 0.5%MoM vs. exp. 0.4% and GDP, but the pricing in a rate cut by the RBA over the next year has nearly disappeared. If the US Dollar remains on weaker through the month of December, a push toward 0.7500 looks increasingly probable with the fundamental and Intermarket wind in the Australian Dollar’s sails. read more

Europe: There is Nothing Civil about Civil War, in Politics or Economics

DailyFX.com –

Europe: There is Nothing Civil about Civil War, in Politics or EconomicsEurope: There is Nothing Civil about Civil War, in Politics or Economics

Fundamental Forecast for Euro: Neutral

So how about that Euro, huh? After last week’s four-handle burst on the back of the ECB disappointment, many traders looked at this as a gift from markets: The potential to short the currency of an economy that’s facing significant headwinds without the ability to form a strong enough coalition to actually try to counter this weakness. This is yet another page in the story of what happens when a supra-national attempts to re-grow their economy. read more

Will the Chinese Yuan Stop Falling in the Week Ahead?

DailyFX.com –

Chinese Yuan CNY

NZD/USD NY Spot Close 6.53139

Will the Chinese Yuan Stop Falling in the Week Ahead?

Fundamental Forecast for the Yuan:Neutral to Bearish

In the past week, the Chinese yuan offshore exchange rate against the US Dollar has had little upside action, despite the US Dollar seeing higher volatility while breaking major technical support levels against other currencies. Mainly, this is because the offshore yuan exchange rate is still highly influenced by the onshore yuan rate, which is set to a peg versus the greenback, and is only allowed to float within +/-2% range. Once the People’s Bank of China, the Chinese central bank equivalent of the Federal Reserve, announced a new RMB weighting against a basket of currencies, only then did the USD/CNH rate find upward movement. read more