Daily Market Analysis from ForexMart

[Andrea ForexMart]

Fundamental Analysis for NZD/USD: August 16, 2016

The NZD/USD pair weakened its stance and traded down at 0.7177, although this is still a relatively strong value compared to its counterparts. Investors are taking into consideration China’s mixed signals and the lack of stimulus from the People’s Bank of China. The RBA and RBNZ statements on its rate decisions are making investors and traders uneasy. The retail sales volume rose by 2.3% last June, which is the biggest increase in the last nine years. This is in comparison with a 1% increase last year.

According to Statistics New Zealand, the increase was mainly caused by surges in vehicle sales, personal and pharmaceutical products, and more people spending on eating and drinking out. The retail sales’ total value rose from 2.2% last quarter to almost $20 billion. According to Westpac economist Satish Ranchhod, consumers are benefiting from low inflation and interest rates, which are putting money back in domestic pockets. A strengthened tourist season and strong migration rates are also helping in the surge in spending figures.

Zespri has also stated that it has already improved its pre-export checking procedures, which has already been approved by the MPI, who is currently advising China with regards to kiwifruit exports. Kiwifruit sales has also exceeded last year’s total volume sales, with another 7 million kiwifruit trays in line for export this coming season.

 

[Andrea ForexMart]

Technical Analysis for AUD/USD: August 17, 2016

The AUD/USD pair closed down Tuesday’s session on a slightly higher level, after the trading range widened following traders’ reactions to several financial events. The AUD was previously subject to pressure after a statement from RBA can possibly mean that the Reserve Bank of Australia might be considering another interest rate cut. However, the USD went down following dovish comments from Fed, increasing the overall value of the Aussie.

Investors are now awaiting the release of the Wage Price Index, and economists are expecting the quarterly report to be at 0.5%. However, union members are expecting a weaker range for the Wage Price Index, which can lead to volatility after its release. The Fed will also be releasing its July meeting minutes and traders will be anticipating the next scheduled rate cut.

The daily swing chart is showing a generally upward trend, although momentum has a possibility of going downward. Based on the pair’s current pricing at .7690, the AUD/USD pair’s direction will likely be determined by the reaction of traders to the .7695 short-term pivot. An increase in selling pressure is possible should there be a downward bias on a sustained move under .7635, while an upward bias will develop if there is a sustained move over .7755.

 

[Andrea ForexMart]

Fundamental Analysis for EUR/JPY: August 18, 2016

The EUR/JPY pair continued its tight range-trading during Wednesday’s session after trading at 113.195, since traders are now focusing on the minutes from the US Federal Reserve Bank’s July meeting.

The lack of significant economic news from both Japan and the eurozone has led to decreased volatility and volume levels, with the currency pair now range-bound after reaching its lowest level in a month last August 5 at 112.308. However, this unnatural chart pattern might lead to excessive volatility levels, and investors should brace themselves for possibly unexpected economic news.

The ECB is not expected to release a statement until September 8 and the BoJ has apparently run out of economic stimuli, so traders must expect a dull period for the EUR/JPY pair until economic stimuli drives the pair back in activity.

On Thursday, investors are expected to react to several Japanese reports, including the Adjust Trade Balance, where it is expected to be released at 0.14 trillion yen. Japanese exports are expected to decrease by up to 14.0%. Meanwhile, July’s trade balance is expected to fall from 693 billion yen to 284 billion yen.

 

[Andrea ForexMart]

USD/JPY Technical Analysis: August 18 2016

During the Asian trades session, the pair had restored its position to JPY 100.77 and stops at the 101.14 area which sets off the USD/JPY pair to lead with a rate of 100.74. Furthermore, the rate of the USD increased with the aid of the NY Fed President Dudley whilst the yen became weak due to its prime minister who allowed the intervention of the financial regulators whenever the levels of the rate remained indecorous.

The pair is anticipated to trade over the level of 100.77 and the range of the limit is JPY 99.90-JPY 101.67 and descends perfectly.

 

[Andrea ForexMart]

Fundamental Analysis for USD/CAD: August 19, 2016

The USD/CAD pair went down by 26 points as the USD further decreased its value, with both gold and oil experiencing an upsurge. The said pair is currently trading at 1.2819, with the CAD continuing its present positive value. The CAD temporarily went over the 78-cent level of the USD as the greenback fell in relation to a lot of currencies as oil prices continued to rise.

One of the reasons for the CAD’s recent gains is the sudden upsurge in oil futures, with per barrel amounting to more than $47. Another reason for the currency’s gain is the weakening of the US dollar after calls for the Federal Reserve to take extra caution when it comes to increasing its interest rates. The CAD has been steadily increasing its value during the last 7 trading sessions before the meeting of the Federal Open Market Committee yesterday, which led to a decrease after the release of the meeting’s statement.

Investors are now expecting the release of the Canadian Consumer Price Index monthly report for its yearly and monthly data. Yearly data is expected to fall at 1.3% from last month’s 1.5%, while the monthly data is also expected to go down by -0.1% from last month’s 0.2%. Should the actual data fail to match the expected data release, then traders can expect volatility in prices as the market will try to adapt to the released financial information.

 

[Andrea ForexMart]

EUR/USD Technical Analysis: August 19, 2016

As presented over the 4-hour chart, the euro and dollar reached an indecision level since the US Dollar further weakened. The time frame of the currency pair maintained a higher point of movement thus heading on an accelerated trend lines.

The increase of EURUSD is pulled by the resistance level of euro whereby set at 1.1320, the support comes between the Eur 1.1207-Eur 1.1230.

The pair is predicted for probable decrease in distinction to EUR 1.1320. The procurement of a long investment position is suited on settling against the said level.