Forex news for US trading on April 5, 2016
- US stocks slump in trading today
- Bank of Canada's Wilkins: Slower China growth welcome, problems possible
- How does Atlanta Fed GDPNow track actual GDP?
- Crude oil futures settle up $0.19
- The weakest currency pair of the day is....? Anyone? Anyone?
- IMFs Lagarde: "There is a recovering the global economy, but..."
- ECB Schaeuble: ECB policies face growing backlash among Germans
- The Atlanta Fed GDPNow tracker takes another step to the downside
- Boom goes the barrier, bounce we go to 110.41
- Iceland's PM bites the dust over Panama papers
- Dollar hits the skids.
- Clearing up the Nowonty quote on deflation
- The direct risk to financial stability from the oil price decline is limited says Draghi
- New Zealand dairy auction GDT price index +2.1% vs -2.9% prior
- ISM's Nieves: US economy is humming along pretty good
- ECB's Nowotny: What the ECB is doing cannot prevent deflation
- JOLTS Job Openings 5.445m vs 5.490m estimate.
- April 2016 US IBD TIPP economic optimism 46.3 vs 47.0 exp
- March 2016 US non manufacturing PMI 54.5 vs 54.0 exp
- March 2016 US Markit services PMI final 51.3 vs 51.2 exp
- February 2016 Canadian trade balance -1.91bn vs -0.90bn exp
- February 2016 Us trade balance -47.1bn vs -46.2bn exp
- BOJ likely to discuss easing at April meeting - Livesquawk
Extra. Extra. Read all about it. The EURUSD looks to close at 1.1386 for the third day in a row. That is news worthy
There was once again a move lower and a move back up. The fall was helped by comment from ECB Nowotny that was reported as him saying: "What the ECB is doing cannot prevent deflattion". The actual translation should have read was "What the ECB does, can prevent a deflation". The first move was lower and the price stopped right on the lows from Friday at the 1.1334. So technically, the support and subsequent rebound made some sense too. The pair is ending the day above the 100 hour MA which comes in at 1.1375. This level will be the bullish above/bearish below line for the new day of trading.
The USDJPY was the strongest currency on the day - rising against all the major currencies in trading today. The buying of the JPY started in the Asian Pacific session. Some better wage data helped the tone. A weaker stock market in Europe (Dax down 2.63%) and the US (S&P down -1.01%) helped weaken risk pairs (like everything with a JPY in it). The AUDJPY, GBBJPY, CADJPY and NZDJPY fell by about -1.5% on the day. For the USDJPY, an option barrier at 110.00 was ceremoniously triggered at 110.00. The price moved to a low of 109.93 and then shot up to 110.43 in less than 2 minutes. The high correction extended to 110.53 at the correction high. We are ending the day splitting the difference at the 110.25 area.
The GBPUSD was under pressure for most of the day - reaching a low around the time of the better than expected Non Manufacturing ISM (54.5 vs. 54.0 estimate). The move lower took the price to a low of 1.4120 - and below the swing low from the US employment day on Friday (at 1.4170). I bring that specific price up because the high corrective price in post ISM period stalled at 1.41695. So in the new trading day, a move above will be needed to turn the bearish bias to something more bullish.
The AUDUSD, NZDUSD and USDCAD all had differing degrees of weakness today - with the AUD showing the most weakness. The AUDJPY fell by 1.86% on the day. The RBA kept rates unchanged but commented on the AUD lofty value. That coupled with declines in the stock markets. led to the trend move down in that pair. ON a correction, look for sellers to lean against the 83.83 level (easy to remember). It is the 200 bar MA on the 4 hour chart and should now be resistance.
Canada had a weaker trade number that weakened the CAD (pushed the USDCAD higher) to a high of 1.3218. Higher oil prices,and a move back below a broken trend line, helped push the price back down. In the new trading day, watch the 1.3110 level (200 hour MA).
The NZDUSD ended down on the day, but well off the lows (at 0.6758 - currently trading at 0.6805). The pair is testing the 200 hour MA at the 0.68138 as the trading day comes to a close. Will sellers lean against that MA level in the new trading day? Risk can be defined and limited against the level. A move above will look toward 0.6834.
Wishing you all a great day, evening, night wherever you are in the world and good fortune with your trading.
