Forex news for Asian trading Monday 28 November 2016
- Be aware. AUDUSD tests underside of broken trend line
- NZ PM Key: Budget surpluses will start to get quite big
- Gold corrects higher as the dollar retreats
- Japan's Abe: Free trade stands at a crossroads
- USD/JPY decline extends to more than 100 pips as technical levels crack. What's next
- PBOC sets daily yuan midpoint at 6.9042 vs 6.9170 prior
- 2 reasons why USD correlation with oil is 'overstated' - Goldman Sachs
- US dollar feeling some early heat
- Weekend news: China industrial profits rose 9.8% y/y
- China opens the door to more fiscal stimulus
- USD/CAD is in a turkey-coma as oil wilts
- Oil sinks 2% in early trading on OPEC disarray
- PBOC deputy: Yuan exchange rate to be basically stable
- What's on the economic calendar in Asia-Pacific trading
- Fillion wins French Conservative primary
Weekend posts:
- The top 5 events/releases for the current trading week
- Russian delegates won't attend oil experts meeting Monday but Novak positive on a deal
- ECB Coeure: Greece's bailout performance review progressing well, timely conclusion needed.
- Clinton campaign will participate in Wisconsin recount
- Why Deutsche Bank is increasingly confident in EURUSD parity
The week opened with the US dollar moving straight to the downside. All the major currencies moved lower against the greenback with the USDJPY leading the charge (-1.17%). Meanwhile the JPY was the strongest currency. This combination runs counter to the most of the post-Trump activity. Helping the dollars slide was:
- Gold lower by -$9.00 (was down by more than $14.00 at the lows)
- Spot oil prices are ending the session unchanged but was down nearly $1.00 at the lows
- US bond yields slid with the 10 year yield down about 3.2 basis points to 2.3249%. THe 2 year note yield fell by about 1 basis point to 1.1089%.
In equity markets:
- Nikkei fell -0.27%
- Hang seng was up +0.86%
- Shanghai composite index rose by 0.49%
As mentioned the USDJPY was the weakest pair in the new trading day. Technically, the pair fell below the 100 hour MA at the 112.22 area and tumbled to a low of 111.34 before staging a rebound. The 100 hour MA will be eyed as resistance as European/London traders enter for the day.
The EURUSD opened just above the 100 hour MA at the 1.05910 level and never really tested going below. The pair moved above the 200 hour MA (currently at 1.05215) for the 1st time since the US election day results. That was enough to send the pair moving even higher. The pair ultimately stalled near the 38.2% retracement of the move down from the November 10 high at the 1.0683 level. As European traders enter, the 100 hour MA will be eyed as a level to stay above if the buyers are to keep some control.
The commodity currencies also moved higher with the NZDUSD advancing by 0.66% and the AUDUSD up by 0.79%. The AUDUSD on Friday moved above its 200 hour MA for the first time since November 10th, but ran into resistance against the underside of a broken trend line today and stalled (CLICK here)
The NZDUSD based near the 100 day MA at the weeks opening (at 0.7034 area and later moved above a topside trend line that stalled the rally on Friday. Today's break sent the pair up to and through the high from last week at the 0.7085 level. The high stalled at 0.7094. The next upside target will be eyed at the 0.7110 level (high from November 17th.
Below is a snapshot of the % changes of the major pairs vs. each other.
