Author: FX
The NZD/JPY pair fell sharply on Friday and reaching a low of 87.85. The RSI has plunged to 36, indicating that the bears are in full control and the negative momentum is likely to persist. Bears have the 87.00 threshold on their sight. The NZD/JPY pair has maintained its bearish stance, extending the selloff that started in Tuesday’s session. Technical indicators strongly suggest that the bears have the upper hand, and the pair could continue to decline in the coming days. The Relative Strength Index (RSI) has reached 36 and approaches the oversold threshold. However, after the pair shed more…
Gold tumbles after failing to break $2,531 resistance, closing at $2,493 as Fed rate cut speculation intensifies. US Nonfarm Payrolls missed estimates, but improved figures and rising hourly earnings fueled uncertainty over a 25 or 50 bps cut. Despite falling Treasury yields, the US Dollar Index recovered above 101.00, pressuring Gold prices further. Gold retreated after failing to test the all-time high of $2,531 and diving more than 0.80% late in the North American session. US economic data cast doubts on a 50 or 25-basis-point (bps) interest rate cut by the Federal Reserve (Fed) at the September meeting. The XAU/USD…
NZD/USD falls 0.84% on Friday to trade at 0.6170. The RSI and MACD indicators align with the bearish outlook, signaling negative momentum. The 20-day SMA presents a strong barrier against the sellers. The NZD/USD pair has been trading lacklusterly within a narrow range, but Friday’s sharp decline has shifted the technical outlook to bearish, at least for the short-term, shedding more than 0.80% at the end of the week. The Relative Strength Index (RSI) has turned sharply lower, indicating that the momentum is shifting in favor of the bears. The RSI is currently trading at 52, which is in neutral…
AUD/USD falls and struggles to gain ground against the USD. US Nonfarm Payrolls disappoint with 142K new jobs added, below the 160K estimate. RBA’s hawkish stance suggests no imminent rate cuts, which might support the AUD. The AUD/USD declined by 0.85% in Friday’s session, now hovering near the 0.6700 level following the release of the US Nonfarm Payrolls (NFP) report for August. However, the hawkish stance of the Reserve Bank of Australia (RBA), suggests that no imminent rate cuts are likely, which might limit the downside to the Australian Dollar. The economic prospects for Australia are uncertain, and the Reserve…
Markets:Gold down $20 to $2496US 10-year yields down 1.4 bps to 3.72%, 2-year yields down 9.3 bps to 3.65%WTI crude oil down $1.07 to $68.08S&P 500 down 1.7%JPY leads, AUD lagsNon-farm payrolls Friday lived up to the hype, though it wasn’t exactly straightforward. The kneejerk reaction to the report was dovish and the US dollar sold off significantly as 50 bps cut odds rose to 57%. In that move the euro rose to 1.1154 from 1.1105 and the pound rose 60 pips to 1.3240.It took about an hour for those moves to fade completely as the market took a second…
Mexican Peso tumbles as USD/MXN rallies above 20.00 following mixed US jobs data, hitting a daily high of 20.09 before retreating. Fed rate cut expectations remain uncertain, fluctuating between 50 and 25 bps, adding pressure on the Mexican Peso. Political instability in Mexico, driven by controversial judicial reforms, keeps traders risk-averse toward the Peso. The Mexican Peso depreciated against the American currency on Friday after the US Nonfarm Payrolls (NFP) report spurred volatility in the bond market. Fed interest rate probabilities fluctuated between a 50 or 25-basis-point cut. This and Mexico’s political uncertainty around controversial reforms keep the Peso pressured.…
The Dow Jones fell another 400 points on Friday after NFP jobs data missed the mark. US job additions continue to underperform, and downside revisions remain a concern. Despite the miss in NFP employment, market bets for a 25 bps cut come out on top. The Dow Jones Industrial Average (DJIA) shed 400 points on Friday after US Nonfarm Payrolls (NFP) came in below expectations, alongside a downard revision to previous figures. Lopsided jobs growth has dropped further signals that the US economy is slowing down, but not slow enough to spark firmer bets of a double cut from the…
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None of how the market is acting today in reaction to the lack of a strong 50 basis point signal from Waller should be a surprise.Here is what I wrote back in June:It’s been awhile since we’ve had a ‘normal’ rate cutting cycle so it’s worth a reminder about what happens and what always happens: The market turns into a whiny teenager. It starts kicking-and-screaming for rate cuts, with equities bleeding on anything that isn’t overtly dovish.If you don’t like that reference, then consider it like a toddler that wants a candy. They always want more and they want it…
WTI crude is still clinging to support but the picture is looking increasingly dire for brent. The global benchmark closed today at the lowest since December 2021.There have been a series of daily lows right around these levels and there are intraday lows that are worse since 2021 but this is the lowest daily and weekly close. That’s not a good sign.Brent weeklyI’d argue that the physical picture isn’t this bad, as we’ve seen hefty draws in US supplies and draws in global inventories. I think the market is anticipating a global growth slowdown and selling based on that as…