fx

RBNZ’s McDermott would be happy with lower NZD

Reserve Bank of New Zealand's Assistant Governor and Head of Economics, Dr John McDermott, said he would be happy with a lower NZD exchange rate, adding that NZD needs to be lower than where it is t present. A cheaper Kiwi would help offset dairy price... [...]

Caution: there ARE risks in the Australian economy – ANZ

FXStreet (Guatemala) - Analysts at ANZ explained that yesterday’s building approvals, international trade and services sector data for December 2015 highlighted a few risks to the domestic economy.

Key Quotes:

"The first is a slowing in the labour intensive residential construction industry. Looking through the monthly volatility, building approvals are trending lower and were 8% below their April 2015 peak."

"Moreover, growth in dwelling prices has slowed sharply, removing one tailwind for consumer spending. The strength in property and related activity has been a key support to overall activity and jobs growth. Yesterday’s data also showed that non-residential building approvals continue to track broadly sideways.

Secondly, the services sector appears to have lost some momentum coming into 2016 as indicated by softer readings in recent months for Ai Group’s services sector index (it may be no coincidence that the US non- manufacturing ISM has also slowed in tandem).

Thirdly, the international trade deficit widened sharply in December, due largely to lower bulk commodity prices. On the bright side, net tourism-related exports continue to rise strongly but even here we expect that the impetus to growth from a lower AUD will wane over 2016."

Analysts at ANZ explained that yesterday’s building approvals, international trade and services sector data for December 2015 highlighted a few risks to the domestic economy.

(Market News Provided by FXstreet) [...]

Why was the US dollar sold-off? – Westpac

FXStreet (Guatemala) - Sean Callow, analyst at Westpac explained that markets were very volatile in New York, with equities and oil price swinging from sharp losses to steep gains. Key Quotes:"The US dollar fell heavily as key Fed official Dudley hinte... [...]

Schedule for today, Thursday, Feb 4’2016:

(time / country / index / period / previous value / forecast) 07:15 U.S. FOMC Member Rosengren Speaks 08:00 Eurozone ECB President Mario Draghi Speaks 08:30 United Kingdom Halifax house price index January 1.7% 0.3% 08:30 United Kingdom Halif... [...]

NZD/USD’s 2016’s reversal due a correction?

FXStreet (Guatemala) - NZD/USD reached a high of 0.6674 in a short squeeze as the US dollar collapsed with the dollar index having its second worst week since 2011. There is no full explanation for the sell-off, but a combination of triggers including ... [...]

US ADP jobs healthy; review – Nomura

FXStreet (Guatemala) - Analysts at nomura explained the ADP national employment report in detail.

Key Quotes:

"According to ADP/Moody’s, private payrolls added another healthy 205k jobs in January, slightly above market expectations (Nomura: 180k, Consensus: 195k) after a revised 267k job gains in December (previously reported as 257k). Most of the job gains came from the service providing sector, which added 192k, while the goods producing sector only added 13k.

Further breakdown showed that manufacturing payrolls were on net unchanged over the month, construction added 20k and mining lost 8k. We remain comfortable with our call for Friday’s report to show that nonfarm payrolls increased by 185k and private payrolls added 180k jobs."

Analysts at nomura explained the ADP national employment report in detail.

(Market News Provided by FXstreet) [...]

High conviction trade in GBP/USD – Westpac

FXStreet (Guatemala) - Analysts at Westpac suggested buying GBP/USD into 1.4330, stop at 1.4150 as a high conviction trade.Key Quotes:"For a second week in a row we have two bullish arrows on GBP giving us a buy on weakness signal. Our model remains d... [...]

US stocks turn around and end mostly higher

FXStreet (Córdoba) - Wall Street was in a roller-coaster ride this Wednesday, with the DJIA posting a triple digit decline before turning around during the last hours, being up 250 points at one stage, as an 8% gain in WTI futures, led energy and commodities sectors higher. Tech giants Google, Yahoo, Amazon all fell by 4% or more.

The DJIA closed 183.12 points, or 1.13%, higher at 16,336.66. The S&P 500 ended up by 9.50 points, or 0.50%, at 1,912.53. The Nasdaq fell 12.71 points, or 0.28% to 4,504.24.

DJIA technical view

“Despite a long wick below it, the daily candle shows that the index has opened and closed the day above its 20 SMA, a major intraday support around 16,133, while the technical indicators have bounced from their mid-lines, maintaining bullish slopes, but with limited upward strength”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is barely above a horizontal 20 SMA, but the technical indicators have lost upward strength around their mid-lines, and are currently turning south, not yet confirming a short term bearish continuation”.

Support levels: 16,262 16,205 16,133. Resistance levels: 16,378 16,454 16,510.

Wall Street was in a roller-coaster ride this Wednesday, with the DJIA posting a triple digit decline before turning around during the last hours, being up 250 points at one stage, as an 8% gain in WTI futures, led energy and commodities sectors higher. Tech giants Google, Yahoo, Amazon all fell by 4% or more.

(Market News Provided by FXstreet) [...]