FOREXYARD: Forex News Blog | |
- EUR Plummets on Peripheral Debt Concerns
- U.S. Durable Goods Orders on Tap
- Japan Intervenes in the FX Market
- NZD/USD Downtrend might be at Its End
- AUD/NZD Bearish Correction May be in the Making
- New Zealand Dollar Holds Up Near Month High
- AUD/NZD Breaches Consolidation Trend
- NZD/JPY Forecasted to Move into Bearish Cycle
- Kiwi Likely to Make Gains on AUD in Upcoming Trading
| EUR Plummets on Peripheral Debt Concerns Posted: 08 Nov 2010 06:38 PM PST
Debt concerns across the euro zone have pushed the EUR back down against its primary rival, the US dollar. Falling from its recent high of 1.4271, the EUR/USD pair now trades below the 1.3900 mark. Irish debt concerns, and other peripheral problems in the region, weighed heavily on the euro in yesterday's trading. With the euro zone largely absent from the economic calendar today, it's likely the 16-nation single currency will continue to face pressure. Here is a roundup of today's leading news events: 9:30 GMT: GBP – Manufacturing Production This report measures the month-to-month percentage change in manufacturing output by the United Kingdom. The number is controlled for inflation and therefore reflects real changes in output. Since manufacturing comprises roughly 80% of the UK's industrial output, this indicator carries a heavy impact for growth forecasts, thereby affecting the GBP quite heavily in the moments after its release. 20:00 GMT: NZD – RBNZ Financial Stability Report The Reserve Bank of New Zealand (RBNZ) will be releasing a statement regarding its outlook on New Zealand's economy. It will be providing insights on inflation, economic growth and stability, as well as forecasts towards its next rate statement. This report has the potential to drive the NZD into a volatile frenzy if it comes out hawkish. Traders will want to keep an eye on the kiwi in today's late trading hours. |
| U.S. Durable Goods Orders on Tap Posted: 26 Oct 2010 11:15 PM PDT
The U.S. dollar entered a bullish trend yesterday for the first time in three months. This was due to speculation that the Federal Reserve will increase debt purchases. The market has reacted positively to the speculations, largely because they feel U.S. inflation will go up as a result. Economists agree that this is a necessary step by the Fed, and that it will have positive effects on the economy. This was enough the support the dollar yesterday. However, this might have little effect on today's trading, due to the large amount of significant economic releases from all over the world. Here are today's leading economic indicators: • 12:30 GMT, U.S. Core Durable Goods – This report measures the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items, which tend to distort the underlying trend. If the end result will beat analyst’s expectations for a 0.4% rise, the dollar might rise further. |
| Japan Intervenes in the FX Market Posted: 14 Sep 2010 11:04 PM PDT
The Japanese Yen experienced one of its most bullish trading days in recent weeks on Tuesday against the USD. The USD/JPY fell as low as 82.97, its lowest level since mid-1995, after Japan's prime minister won a ruling party leadership vote, reducing the chances Japanese authorities would attempt to stem yen gains. But overnight the Bank of Japan intervened in the FX market to weaken the yen. Another developing trend is the recovery of Gold. Since the Dollar began dropping against the majors, gold has risen further and further. Currently traded around $1268 an ounce, if the Dollar will continue to drop, gold could reach $1280 an ounce by the end of the day. Today's Leading Indicators 14:30 GMT: US Crude Oil Inventories 21:00 GMT: NZD Official Cash Rate |
| NZD/USD Downtrend might be at Its End Posted: 16 Aug 2010 03:21 AM PDT
The NZD/USD pair has experienced much bearishness in the last few days as it currently trades at 0.7030. The current bearish trend is expected to come to an end anytime soon, and a bullish correction may be in the making. I will illustrate below that the NZD/USD may very well be heading for a reversal. Traders are strongly advised to take advantage of the trend at an early stage. • Below is the 8 hour chart of the NZD/USD currency pair. • The technical indicators used are the Slow Stochastic, Williams Percent Ranges, and Relative Strength Index (RSI). • Point 1: There is a "doji" candlestick that has formed on the chart, indicating that a reversal should take place. • Point 2: The Slow Stochastic indicates a bullish cross, signaling that the next move may be in an upward direction. • Point 3: The Relative Strength Index (RSI) signals that the price of this pair currently floats in the over-sold territory, suggesting upward pressure. • Point 4: William Percents Range also supports the upward direction. • The volatile downward movement which occurred prior to this upward correction has generated these indicators, and there appears to be room for this correction to continue. NZD/USD 8-Hour Chart |
| AUD/NZD Bearish Correction May be in the Making Posted: 29 Jul 2010 11:04 PM PDT
The volatile of the AUD/NZD pair continues to be affected by the volatile forex market. The last two days have seen a lot of bullish strength in the AUD/NZD pair. However, as I demonstrated below, it seems that the pair's bullish run may have run out of steam, and a bearish correction could be underway soon. This might be a good opportunity for forex traders to enter the trend at a very early stage and at a great entry price. • Below is the 8-hour chart of the AUD/NZD currency pair. • The technical indicators that are used are the Relative Strength Index (RSI) and Slow Stochastic. • Point 1: There is a "doji" candlestick that has formed on the chart, indicating that a reversal should take place. • Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction. • Point 3: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure. AUD/NZD 8-Hour Chart |
| New Zealand Dollar Holds Up Near Month High Posted: 17 Jun 2010 08:55 AM PDT
The New Zealand dollar (NZD) traded near its strongest levels since mid-May after a global rally in stocks and declining volatility boosted demand for higher-yielding assets. The Kiwi rose yesterday as the Standard & Poor's 500 Index closed above its average level in the past 200 days, signaling the stocks gauge may extend gains. The bias for the NZD is to the upside, analysts have said, and the New Zealand's currency may reach 71 cents this week. The New Zealand dollar also gained considerably last week, after having been battered by the market over the past few weeks. The NZD rallied on Wednesday after the Reserve Bank of New Zealand (RBNZ) raised their benchmark Official Cash Rate by 25 basis points from 2.5% to 2.75%. Also on Wednesday, the New Zealand Overseas Trade Index showed a better-than-expected increase of 5.9%, quarter-on-quarter, versus a market consensus expectation of only a 1.9% increase. This was the first time the central bank had hiked rates since July of 2007. This has made the NZD/USD pair the biggest mover among the most-watched currency pairs in percentage terms last week. The RBNZ’s rate hike was not entirely unexpected, although many observers apparently considered it a strong possibility that the central bank would leave rates unchanged. In a statement made accompanying the rate decision announcement, the RBNZ wrote, "stronger world activity, particularly in Asia-Pacific economies, is forecast to increase demand for New Zealand's exports. The statement cited the Asian market as the more vibrant in the global economy. |
| AUD/NZD Breaches Consolidation Trend Posted: 01 Jun 2010 02:50 AM PDT
The recent trend which has been forming on the AUD/NZD daily chart appears to have come to an end today. After a month of consolidating towards the 1.2400 price level, the New Zealand Dollar (NZD) seems to have gained the upper hand. The pair breached out of its consolidation trend in a downward direction and currently trades near 1.2350. Our technical indicators, as detailed below, seem to suggest that this downward momentum could sustain itself for the next few days. The indicators I’ve used here are the Relative Strength Index (RSI), the Stochastic (slow), and Auto Trendlines. The area of the chart indicated by Point 1 shows us the Auto Trendlines which were superimposed onto the chart using this new indicator and clearly displays the break-through point taking place yesterday. A breach such as this typically indicates that the new direction of the currency pair will be in the same direction as the breach for a number of the subsequent candlesticks. The RSI at Point 2 demonstrates that the pair currently floats in what is considered neutral territory and points downward. We can deduce from this that there is no strong pressure in either direction and the current movement will likely continue until such pressure becomes evident. The Stochastic (slow), indicated by Point 3 in the chart, shows that a bearish cross formed a few days back and what we are now seeing is the correlating downward movement. Since this indicator has yet to drop below the 20 line we can assume that the momentum for this pair remains downward. AUD/NZD Daily Chart |
| NZD/JPY Forecasted to Move into Bearish Cycle Posted: 04 May 2010 01:24 AM PDT
After a prolonged upward trend, NZD/JPY may be poised for a downward correction. This analysis is based on a number of technical indicators, which show that the pair is currently in overbought territory. For this analysis, we will be using the ForexYard daily chart for NZD/JPY. The technical indicators used are the Bollinger Bands, Relative Strength Index (RSI) and Stochastic Slow. 1. As seen in the chart provided, the price ticks are currently trading right on the upper Bollinger Band. Traders can take this as a clear indication that the pair is approaching overbought territory, meaning a downward correction is probable. 2. The RSI clearly shows the pair well above the upper resistance line, and has been there for some time. Not only does this show that the pair is overbought, but it also tells us that it has been trading at this level for an extended period. Traders can take this as a sign that prices may drop soon. 3. The Stochastic Slow shows a bullish cross forming just above the upper resistance line. This is further corroborates that the pair has finished its upward movement, indicating that it may be a good time for traders to enter into sell positions. |
| Kiwi Likely to Make Gains on AUD in Upcoming Trading Posted: 17 Feb 2010 12:59 AM PST
The following is the daily chart for AUD/NZD. As will be shown through a number of technical indicators, the pair is likely due for a downward correction in the near future. The indicators used are the 7-day Relative Strength Index (RSI), the 14-day Relative Strength Index (RSI), and the Stochastic Slow. 1. The 7-day RSI is shown already dipping below the upper resistance line. This typically indicates that the pair is has gone into overbought territory and will likely reverse course soon. 2. The 14-day RSI also shows the pair is in overbought territory, although it has not crossed the upper resistance line. More conservative traders will probably want to wait until the line is breached before entering into sell positions. 3. The Stochastic Slow lines show a bearish cross occurred on the 14th of this month. This typically means that a bearish correction will take place relatively soon, supporting the data from the other technical indicators.
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