It was a roller-coaster week for the Australian dollar, with much of the volatility driven by central bank rate moves. AUD/USD ended the week with a huge decline of 1.62% but has started the week in positive territory. Last week's releases indicate that the labour market remains robust and that inflation expectations are accelerating. Australia's employment...
The week ended with a disappointing US inflation report. Headline inflation in May rose to 8.6% YoY, up from 8.3% in April. Core inflation eased to 6.0%, down from 6.2%, but that was little comfort for the markets, which are showing signs of panic over entrenched inflation. The result was that risk appetite fell, sending the US dollar surging against the major...
The New Zealand dollar is in positive territory on Wednesday, as the currency looks for its first winning session since April 20th. The New Zealand labour market remains robust, as confirmed by the Q1 employment report. The unemployment rate remained at a record low of 3.2%, matching expectations. Employment growth fell to 2.9%, (3.1% exp.), which was down from...
Australia's employment report was respectable, and the Australian dollar's reaction was muted. The economy created 17.9 thousand new jobs in March, down from 77.4 prior and shy of the estimate of 40.0 thousand. The unemployment rate remained at a sizzling 4.0%, the lowest since 2008. Today's numbers are unlikely to shed much light on the timeline for the RBA's...
This week’s 3 events will concentrate on US employment numbers. The released figures could bolster or work against the strength found in the USD since the beginning of the year. For instance, the NZD and EUR have quickly dropped in value against the USD and are currently at a multi-month low against the greenback. Depending on this week’s numbers, the GBP, CAD,...
Non-Farm Payroll numbers are due today, after a strong decline EURUSD has settled into a consolidation/bear flag formation. I've been watching for a breakout of this range for a while now and while the structure of the flag has changed, the overarching idea is the same - looking for a break below the range to continue the larger trend. Non-Farm Payroll tends to...
The Canadian dollar is on a holding pattern ahead of key Canadian and US employment reports later today. Currently, USD/CAD is trading just above the 1.27 line. It could be an active North American session for the Canadian dollar, with the release of Canada's job creation numbers and the US nonfarm payrolls. Expectations are low for the Canadian data, with a...
Surprise rate hike! The Bank of England (BoE) delivered an interest rate hike of 0.15% during their monetary policy announcement last Thursday. Out of the nine committee members, eight voted for a rate hike while one voted for rate to remain unchanged at the previous 0.10%. All nine members voted for no change of corporate bond purchases at £20 billion and UK...
After having a positive Employment print on the NZD we expect a strong demand for NZD to push the NZD/JPY pair to complete wave 5.
It has been a rough week for the Australian dollar, which has is down close to 2 per cent this week. AUD/USD is currently trading at 0.7232, down 0.28% on the day. Australia releases key employment data early on Thursday, and the forecast is not encouraging. The economy is expected to have shed 42.5 thousand in July, after a gain of 29.1 thousand in June. The...
Last Friday, IHS Markit released the preliminary PMI data for four major economies. Below are the key points from the individual reports. United States Services sector slowed down to a 5-month low pace due to labour shortages. Manufacturing sector expanded at record high pace. Prices of goods and services remained steep as firms pass on the high costs to...
Gold justifies a downswing from 100-DMA and a 61.8% Fibonacci retracement break around $1,757 during early Wednesday. It should, however, be noted that a horizontal line from mid-March could test the bears around $1,755 amid nearly oversold RSI conditions, suggesting a corrective pullback. Failing to do so will make the quote vulnerable to decline towards the...
The Canadian dollar has reversed directions on Thursday and posted gains. In the North American session, USD/CAD is trading at 1.2076, down 0.46% on the day. On the fundamental front, the Canada ADP employment report for April posted a sharp gain of 351.3 thousand, after a sizzling read of 634.8 thousand in March. The week wraps up with Canada retail sales in...
The Australian dollar has reversed directions on Wednesday and recorded considerable losses. In the European session, AUD/USD is trading at 0.7750, down 0.52% on the day. Investors gave the Aussie a thumbs down on Wednesday after Westpac Consumer Sentiment fell 4.8% in May. The trend of improving consumer confidence over the past three months was broken. Still, a...
The New Zealand dollar has posted strong gains on Tuesday. In the North American session, NZD/USD is trading at 0.7133, down 88% on the day. We continue to see significant volatility from the New Zealand dollar. The currency ended the week with sharp losses of 1.18%, as strong US data lifted the US dollar. NZD/USD started the week with strong gains, but these...
The British pound has soared at the start of the week. Currently, GDP/USD is trading at 1.3961, up 0.86% on the day. The British pound is on a torrid pace. The currency jumped 0.99% last week and has padded those gains on Monday. GBP/USD is closing in on the 1.40 level, which has psychological significance. This line has been tested several times this year, and...
The Canadian dollar has reversed directions on Friday and recorded slight gains. Currently, USD/CAD is trading at 1.2592, up 0.25% on the day. It has been a relatively quiet day week for the pair, but that could change in the North American session, with the release of key employment numbers (12:30 GMT). Canada's economy continues to grapple with the Covid-19...
The consumer confidence index increased to 109.7 in March from 90.4 in February, which beat the economists' forecast at 96.9 Consumers’ assessment of short term outlook on salaries, employment rate and commercial activities increased , with an optimism view on the domestic consumption market MM Analysis The consumer confidence index reached 109.7 in March,...