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17 Jul 2015
Kiwi rebounds in Asia, a batch of US data – Next in focus
FXStreet (Mumbai) - The New Zealand was the biggest gainer amongst the G10 currencies in a calmer Asian session, staging a comeback after the recent drop to 6-year lows against the greenback. The Aussie was seen miring near lows just ahead of 0.74 handle while USD/JPY turned in red, unable to hold gains at three-week highs.
Key headlines in Asia
Australia CB Leading Indicator rose from previous -0.3% to 0.2% in May
Key events ahead - Westpac
Dominating themes in Asia - centered on JPY, AUD, NZD
A data-empty Asian session, with no data reported except for the two-tier data from Australia – CB Leading Index, having no impact on the Fx markets. Most Asian currencies were lifted on broad based US dollar weakness as the USD bulls sought some rest after the two back-to-back sessions of gains.
The Kiwi benefitted the most from US dollar softness and on short-covering rally following Thursday’s slump induced by increased RBNZ rate cut bets. AUD/USD piggy-backed the Kiwi’s rebound and is seen defending 0.74 barrier. The dollar-yen pair is struggling above 124 levels as the greenback eased on profit-taking ahead of the crucial US CPI figures due for release later in the day.
Asian markets are trading mostly mixed, with China stocks emerging the winner. The Shanghai composite index now trades nearly +1.40% at 3875. The Nikkei 225 in Tokyo advances 0.19%, while Australian benchmark the ASX 200 trades flat around 5660. South Korea’s Kospi is losing -0.58% so far.
Heading into Europe - centered on EUR, GBP
There is nothing much to report in the European session ahead in terms of any economic release or any key event, heading for a quiet close to the week.
Looking ahead towards the New York session, the last day of the week will keep the same pace as the previous trading sessions, with several first tier macro updates.
The housing market will be eyed, as the US Census Bureau will release building permits which are set to decline to 1.110 million in June, while housing starts should moderately rise to 1.100 during the same month.
At the same time, US June's inflation report is due and markets expect the annual inflation to reach 0.2%, rising from 0.0% booked in May. We also have CPI figures due to be reported from Canada.
For sure, the preliminary reading of the University of Michigan's (UoM) confidence will be closely watched, with the anticipated figure of 96.5, after 96.1 recorded previously.
Finally, Fed Governor Stanley Fischer will speak about the central bank's priorities and challenges at the US Chamber of Commerce Center for Capital Markets Competitiveness.
GBP/USD Technicals
Valeria Bednarik, chief analyst FXStreet explained, "The bullish trend remains firm in place, and the 1 hour chart shows that the price is now aiming to advance above a mild bearish 20 SMA, whilst the technical indicators present a limited upward slope, approaching now their mid-lines. In the 4 hours chart, the price is well above its 20 SMA, whilst the Momentum indicator has turned lower, but remains above the 100 level, and the RSI indicator is recovering its bullish tone, advancing around 56.”
“As long as the price holds above 1.5590, the 23.6% retracement of the latest bullish run, the upside remains favored, eyeing an approach to the 1.5710/20 price zone for this Friday."
Key headlines in Asia
Australia CB Leading Indicator rose from previous -0.3% to 0.2% in May
Key events ahead - Westpac
Dominating themes in Asia - centered on JPY, AUD, NZD
A data-empty Asian session, with no data reported except for the two-tier data from Australia – CB Leading Index, having no impact on the Fx markets. Most Asian currencies were lifted on broad based US dollar weakness as the USD bulls sought some rest after the two back-to-back sessions of gains.
The Kiwi benefitted the most from US dollar softness and on short-covering rally following Thursday’s slump induced by increased RBNZ rate cut bets. AUD/USD piggy-backed the Kiwi’s rebound and is seen defending 0.74 barrier. The dollar-yen pair is struggling above 124 levels as the greenback eased on profit-taking ahead of the crucial US CPI figures due for release later in the day.
Asian markets are trading mostly mixed, with China stocks emerging the winner. The Shanghai composite index now trades nearly +1.40% at 3875. The Nikkei 225 in Tokyo advances 0.19%, while Australian benchmark the ASX 200 trades flat around 5660. South Korea’s Kospi is losing -0.58% so far.
Heading into Europe - centered on EUR, GBP
There is nothing much to report in the European session ahead in terms of any economic release or any key event, heading for a quiet close to the week.
Looking ahead towards the New York session, the last day of the week will keep the same pace as the previous trading sessions, with several first tier macro updates.
The housing market will be eyed, as the US Census Bureau will release building permits which are set to decline to 1.110 million in June, while housing starts should moderately rise to 1.100 during the same month.
At the same time, US June's inflation report is due and markets expect the annual inflation to reach 0.2%, rising from 0.0% booked in May. We also have CPI figures due to be reported from Canada.
For sure, the preliminary reading of the University of Michigan's (UoM) confidence will be closely watched, with the anticipated figure of 96.5, after 96.1 recorded previously.
Finally, Fed Governor Stanley Fischer will speak about the central bank's priorities and challenges at the US Chamber of Commerce Center for Capital Markets Competitiveness.
GBP/USD Technicals
Valeria Bednarik, chief analyst FXStreet explained, "The bullish trend remains firm in place, and the 1 hour chart shows that the price is now aiming to advance above a mild bearish 20 SMA, whilst the technical indicators present a limited upward slope, approaching now their mid-lines. In the 4 hours chart, the price is well above its 20 SMA, whilst the Momentum indicator has turned lower, but remains above the 100 level, and the RSI indicator is recovering its bullish tone, advancing around 56.”
“As long as the price holds above 1.5590, the 23.6% retracement of the latest bullish run, the upside remains favored, eyeing an approach to the 1.5710/20 price zone for this Friday."