Tag Archives: markets

Australian Dollar Volatility Risk Remains Amid Thin Liquidity

DailyFX.com –

Australian Dollar Volatility Risk Remains Amid Thin Liquidity

Fundamental Forecast for the Australian Dollar: Neutral

  • Australian Dollar Lacking for Discrete Drivers After Fed Rate Hike
  • Thin Liquidity in Pre-Holiday Trade May Amplify Knee-Jerk Volatility
  • Find Key Turning Points for the Australian Dollar with DailyFX SSI

The Australian Dollar faced selling pressure last week as expected, with prices dropping to their lowest in a month against the greenback. The Aussie’s slump was matched by a drop in share prices as risk sentiment soured in the days following the FOMC monetary policy announcement, where Chair Yellen and company issued the first post-QE increase in the benchmark lending rate. The S&P 500 – a benchmark for global risk appetite – ended the week with the weakest close since mid-October. read more

Bets of a BoC Rate Cut Rise As Oil Settles The Week Below $30

DailyFX.com –

Bets of a BoC Rate Cut Rise As Oil Settles The Week Below $30Bets of a BoC Rate Cut Rise As Oil Settles The Week Below $30

Fundamental Forecast for CAD: Bearish

A Bank of Canada rate cut is now the preferred bet as the Loonie seems in near free-fall. Against the JPY, the Canadian Dollar is off over 8% and is among the weakest currencies within the G10 as Chinese economic data continues to discourage risk sentiment and oversupply in Oil continues to push down the price of Oil to 12-year lows. All of this pressure amounts toward the Bank of Canada potentially easing again like they did last January. read more

Deteriorating Sentiment to Fuel Gold Rebound- Supported Above 1080

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Deteriorating Sentiment to Fuel Gold Rebound- Supported Above 1080Deteriorating Sentiment to Fuel Gold Rebound- Supported Above 1080

Fundamental Forecast for Gold: Bullish

Gold prices are sharply higher this week with the precious metal rallying nearly 3.9% to trade at 1102 ahead of the New York close on Friday. The gains come amid a tumultuous week for markets with the Dow Jones Index falling more than 5% during the first week of January, marking the weakest yearly start since at least 1896. read more

Australian Dollar Volatility to Continue on China, Jobs Data

DailyFX.com –

Australian Dollar Volatility to Continue on China, Jobs DataAustralian Dollar Volatility to Continue on China, Jobs Data

Fundamental Forecast for the Australian Dollar: Neutral

  • Australian Dollar Continues to Face China-Driven Risk Aversion Threat
  • Upbeat Jobs Data May Trim RBA Rate Cut Outlook, Cap Aussie Losses
  • Find Critical Turning Points for the Australian Dollar with DailyFX SSI

The Australian Dollar succumbed to broad-based risk aversion last week, dropping the most in over four years against its US counterpart. China appeared to be the epicenter of negativity as policymakers attempted to implement a new circuit-breaker system for limiting stock-market volatility. The setup envisioned pausing trade for 15 minutes if shares sustained a loss of 5 percent and stopping it altogether at a loss of 7 percent. read more

Post-ECB Rally Looking Toppy as Euro Data Continues to Disappoint

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Post-ECB Rally Looking Toppy as Euro Data Continues to DisappointPost-ECB Rally Looking Toppy as Euro Data Continues to Disappoint

Fundamental Forecast for Euro: Bearish

The first week of the year has brought just the most recent allotment of bad data out of the Euro-zone. This week has seen disappointments in German inflation, German unemployment and Euro zone inflation figures. So, not a great week on the data front for Europe. But this isn’t really a surprise, is it? This is just more of the same that much of the world has become accustomed to. Europe is contracting. The bigger question here revolves around the ECB, and what they might actually do at their next policy meeting. Because after the disappointment that the ECB brought to markets in December, numerous questions have remained as to what they may actually do. read more

New Zealand Needs a Relief Rally to Take Eyes Off RBNZ Rate Cut Bets

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New Zealand Needs a Relief Rally to Take Eyes Off RBNZ Rate Cut BetsNew Zealand Needs a Relief Rally to Take Eyes Off RBNZ Rate Cut Bets

Fundamental Forecast for the Kiwi:Bearish

  • New Zealand Dollar Ends Last Week With Strongest Rise Vs. USD in 3-Months
  • Weak CPI on Less Global Demand Keeps RBNZ Ripe for a Rate Cute This Week
  • For up-to-date and real-time analysis on the Kiwi and market reactions to economic factors currently ‘in the air,’ DailyFX on Demand can help.

Risk markets are no longer staring at the abyss as they were at the beginning of last week, which is benefitting markets like equities, Oil, & the New Zealand Dollar. From the start of the year, the New Zealand Dollar has been on its back foot as traders were quick to look at the slack of high-interest rates that the RBNZ could cutto get the economy running smoothly again. The apex of this ‘sell the kiwi against anything,’ move was after the disappointing CPI print on the 19th. read more