The Australian dollar was very strong lately, reaching the highest level in more than a year and a half against its US counterpart last week. But some traders are worried that the currency will be unable to extend its rally, especially if the nation’s central bank remains dovish. Let’s look at fundamentals that will be driving the Australian currency this week. The Australian economy fared relatively well … “Australian Dollar Outlook: Can RBA Stop Aussie’s Rally?”
Month: August 2020
Euro Firm After Mixed Data, Comments from ECB Board Member
The euro rose today. In fact, the shared 19-nation currency was one of the strongest currencies during Monday’s trading session despite mixed domestic macroeconomic data released during Monday’s trading. Positive comments made in an interview with a European Central Bank board member were supportive of the currency. The German consumer price index reported by Destatis was disappointing, falling by 0.1% in August, while analysts had predicted no change. At the same … “Euro Firm After Mixed Data, Comments from ECB Board Member”
Australian Dollar Among Strongest on Economic Data, Risk Appetite
The Australian dollar was among the strongest most-traded currencies today thanks to the risk appetite caused by the surge of the Nikkei stock index. Decent macroeconomic data in China, Australia’s biggest trading partner, and in Australia itself also provided support to the Aussie. The Reserve Bank of Australia reported that private sector credit fell by 0.1% in July, decelerating from the previous month’s 0.2% rate of decline and matching expectations. According to a report from the Australian Bureau … “Australian Dollar Among Strongest on Economic Data, Risk Appetite”
NZ Dollar Flat-to-Lower as Business Confidence Deteriorates
The New Zealand dollar traded either flat or lower against its most-traded peers today, though it managed to gain on few currencies, like the US dollar and the Japanese yen. The kiwi was soft despite the news about the lockdown easing in Auckland. The headline ANZ business confidence indicator was at -41.8% at the end of August, relatively little changed from the reading of -41.4% registered in the first half of the month. It was a significant drop … “NZ Dollar Flat-to-Lower as Business Confidence Deteriorates”
Japanese Yen Weakens on Disappointing Retail Sales, Construction Orders
The Japanese yen is weakening against multiple currency rivals to start the trading week, driven primarily by disappointing macroeconomic data. Despite higher-than-normal inflows into the traditional safe-haven asset, the yen slumped on worse-than-expected retail sales, construction orders, and housing starts. But could the worldâs third-largest economy get a boost from one billionaire hedge fund managerâs recent play? Retail sales tumbled 3.3% in July, down from the 13.1% … “Japanese Yen Weakens on Disappointing Retail Sales, Construction Orders”
AUD/USD Above 0.7320. Could the Bulls Push the Price Further?
The Australian dollar versus the US dollar currency pair seems to have conquered 0.7320. Do the bears have any plans? Long-term perspective The rally that started at the 0.5700 low managed to fuel a very convincing upwards movement. Along the way, the rise validated important levels as support. However, because the last one, 0.7191, was not taken that much into consideration by the price action, the market participants could have argued … “AUD/USD Above 0.7320. Could the Bulls Push the Price Further?”
GBP/USD: Time to take profits? Why sterling may suffer in back-tos-school week
GBP/USD has been rising amid Powell-powered dollar weakness. Brexit headlines, coronavirus news, BOE speeches, and Non-Farm Payrolls are set to move the currency pair. Early September’s daily chart is pointing to near overbought conditions. The FX Poll is pointing to falls in the short, medium and long terms. Fed-fueled dollar weakness has been overshadowing everything … “GBP/USD: Time to take profits? Why sterling may suffer in back-tos-school week”
Euro Rallies Against the Dollar on Upbeat Euro Area Macro Prints
The euro today rallied higher against the US dollar capitalising on the greenback’s overall weakness since yesterday’s speech by the Fed Chair. The EUR/USD currency pair also benefitted from the upbeat macro releases from across the euro area, which lent support to the single currency today. The EUR/USD currency pair today rallied from a low … “Euro Rallies Against the Dollar on Upbeat Euro Area Macro Prints”
Japanese Yen Strengthens As Abe Resigns, Economic Activity Rebounds
The Japanese yen is strengthening against its currency rivals to finish the trading week. The yen has found support on Prime Minister Shinzo Abe stepping down and renewed economic activity in the worldâs third-largest economy. The yen has been performing well in 2020 as investors continue to seek traditional safe-haven assets in the fallout of COVID-19. On Friday, Japanâs prime minister announced that he would be resigning from his post as head … “Japanese Yen Strengthens As Abe Resigns, Economic Activity Rebounds”
Franc Weak Despite Near-Record Jump of KOF Economic Barometer
The Swiss franc fell against almost all of the most-traded currencies today despite the near-record jump of the KOF Economic Barometer. The Swissie managed to gain only against the currencies that were weak themselves, like the US dollar, dragged down by yesterday’s speech of Federal Reserve Chairman Jerome Powell, and the Canadian dollar, which suffered from a sharp economic downturn in Canada. The KOF Business Barometer jumped from the revised July reading of 86.0 … “Franc Weak Despite Near-Record Jump of KOF Economic Barometer”