|Day's range||0.653 - 0.653|
|52-week range||0.6426 - 0.6972|
We’re not expecting too much movement ahead of the Fed’s interest rate and monetary policy decisions on Wednesday. Both the AUD/USD and NZD/USD are expected to remain under pressure because the Reserve Bank of Australia and the Reserve Bank of New Zealand are expected to cut interest rates in the near future. The Fed is not expected to cut rates in June, but its monetary policy statement should open the door for rate cuts in either July or September.
The RBA talks of further rate cuts as the UK Tory Party Leadership race heats up. Stats out of the Eurozone will also be relevant later this morning.
Investing.com - The British pound fell to five-and-a-half month lows on Tuesday in Asia as fears over the threat of a no-deal Brexit resurfaced.
The concern for traders is not likely whether the Fed cuts rates or not at the June meeting, but how dovish it comes across for cuts in July or September. The market has been driving Treasury yields lower due to uncertainty over trade and geopolitics, the economy has been steady to weaker. Fed policymakers may not be influenced by the external events as much and may maintain focus on the economic data.
Investing.com - The U.S. dollar slipped on Monday in Asia as traders awaited the upcoming Federal Reserve policy meeting later this week where Fed Chair Jerome Powell could open the door to rate cuts later in the year.
The short-term range is .6481 to .6682. Its retracement zone at .6582 to .6558 is controlling the near-term direction of the Forex pair. Trading below this zone is helping to give the NZD/USD a downside bias. This zone should be considered resistance.
It’s a litmus test for the U.S economy today. Retail sales and consumer sentiment figures will give the FED an idea of how consumers really feel.
The Greenback is on the back foot early as the Asian markets respond to softer inflation out of the U.S. Australian employment figures failed to impress this morning.
Investing.com - The Australian dollar fell against its U.S. counterpart on Thursday following the release of a disappointing jobs report, while the Japanese yen rose on safe-haven demand.
Investing.com - The U.S. dollar index was hovering near two-month lows on Wednesday in Asia after U.S. President Donald Trump said the officials of the Federal Reserve “don’t have a clue” on rates.
The GBP/USD pair stood higher after the release of positive UK Average Earnings data. Overnight New Zealand Q1 Manufacturing Sales data impacted the NZD/USD movements in the initial hours.
Investing.com - The Chinese yuan rose against the U.S. dollar on Tuesday in Asia as China set the currency’s daily fix at a stronger-than-expected rate. Reports of funding support from the Chinese government were also in focus.
Investing.com - The Mexican peso jumped 2% against the U.S. dollar after the U.S. and Mexico agreed on a migration deal to avoid tariffs on Mexican goods.
Early in the week, we’ll be watching the reaction by Treasury traders to the news of the postponement of U.S. tariffs against Mexico that were supposed to start on Monday, June 10. This could ease pressure on the economy and encourage long bond investors to take profits. Since they move inverse to bond prices, yields could rise, making the U.S. Dollar a more attractive asset.
Based on Friday’s price action and the close at .6664, the direction of the NZD/USD on Monday is likely to be determined by trader reaction to the downtrending Gann angle at .6634.
U.S nonfarm payrolls and wage growth will be the main event of the day. Outside of the stats, will be there any trade chatter to rile the markets?
Ultimately, the direction of the AUD/USD and NZD/USD on Thursday will be determined by the direction of U.S. Treasury yields. This is because traders primarily follow the interest rate differential between U.S. Government bond yields and Australian and New Zealand Government bond yields.
Dollar weakness continues in the early part of the day as the market focus shifts to today’s service sector PMI numbers…
The RBA cut rates this morning. The focus now shifts to today’s stats out of the EU and U.S and FED Chair Powell.
The RBA is expected to cut its benchmark rate by 25 basis points to 1.25%. Traders aren’t too worried about this rate cut because it has been telegraphed for weeks. The key question is how many more rate cuts will follow.
Trump foreign policy brings Mexico back into the spotlight as the U.S President looks to deflect the lack of progress on U.S – China trade talks.