26 May 2015
Broad based USD strength dominates Asia, a host of US macro data eyed
FXStreet (Mumbai) - The USD bulls continue to dominate across the board in Asian hours as strengthening US economy increased bets of a 2015 Fed rate-hike. USD/JPY hit a new two month highs above 121.80 levels while the Aussie is seen consolidating above 0.78 barrier. NZD/USD remains supported above 0.73 handle following better than expected NZ trade balance numbers.
Key headlines in Asia
New Zealand trade balance: Better-than-expected surplus in April
Key events ahead - Rabobank
Dominating themes in Asia - centered on JPY, AUD, NZD
A quiet Asia with muted Japanese stocks amid lack of fresh incentives. While USD/JPY printed fresh two month highs at 121.81 on broad USD strength supported by above estimates US inflation figures released on Friday.
The Antipodeans defends mild gains despite strengthening greenback as the Kiwi remains supported after New Zealand trade balance data came in above market forecasts. While the AUD/USD pair trades in a narrow range above 0.78 handle as markets await fresh batch of US data to be released later today for fresh impetus.
Heading into Europe - centered on EUR, GBP
There is nothing much to report in the European session as the economic calendar remains empty for the second straight session. UK CBI realized sales is the sole data for GBP traders.
Hence, markets now turn their attention towards a series of US data flow later in the North American session with the Durable goods orders and core durable goods orders data to be the main market movers.
The NA open will kick-start with the April durable goods report from the Department of Commerce. The headline is expected to come in 0.5% lower, while the ex-transportation reading should rebound 0.4% on a monthly basis. While consumer confidence and new home sales data will also be closely eyed.
GBP/USD Technicals
Valeria Bednarik, chief analyst at FXStreet notes, “Technically, the 1 hour chart shows that the price is a few pips below a horizontal 20 SMA, whilst the technical indicators are also flat, although the risk remains to the downside considering the RSI holds around 38. In the 4 hours chart, is clear that the price stalled a few pips above a critical static support, the 50% retracement of the 1.5088/1.5814 rally at 1.5440, from where the pair managed to regain the upside on a test earlier this month."
"Should the price extend below the mentioned 1.5440 once the market it's in full-volume mode, the risk turns towards fresh lows below the 1.5400 figure, eyeing an approach to the 1.5360 region, the 61.8% retracement of the mentioned rally."
Key headlines in Asia
New Zealand trade balance: Better-than-expected surplus in April
Key events ahead - Rabobank
Dominating themes in Asia - centered on JPY, AUD, NZD
A quiet Asia with muted Japanese stocks amid lack of fresh incentives. While USD/JPY printed fresh two month highs at 121.81 on broad USD strength supported by above estimates US inflation figures released on Friday.
The Antipodeans defends mild gains despite strengthening greenback as the Kiwi remains supported after New Zealand trade balance data came in above market forecasts. While the AUD/USD pair trades in a narrow range above 0.78 handle as markets await fresh batch of US data to be released later today for fresh impetus.
Heading into Europe - centered on EUR, GBP
There is nothing much to report in the European session as the economic calendar remains empty for the second straight session. UK CBI realized sales is the sole data for GBP traders.
Hence, markets now turn their attention towards a series of US data flow later in the North American session with the Durable goods orders and core durable goods orders data to be the main market movers.
The NA open will kick-start with the April durable goods report from the Department of Commerce. The headline is expected to come in 0.5% lower, while the ex-transportation reading should rebound 0.4% on a monthly basis. While consumer confidence and new home sales data will also be closely eyed.
GBP/USD Technicals
Valeria Bednarik, chief analyst at FXStreet notes, “Technically, the 1 hour chart shows that the price is a few pips below a horizontal 20 SMA, whilst the technical indicators are also flat, although the risk remains to the downside considering the RSI holds around 38. In the 4 hours chart, is clear that the price stalled a few pips above a critical static support, the 50% retracement of the 1.5088/1.5814 rally at 1.5440, from where the pair managed to regain the upside on a test earlier this month."
"Should the price extend below the mentioned 1.5440 once the market it's in full-volume mode, the risk turns towards fresh lows below the 1.5400 figure, eyeing an approach to the 1.5360 region, the 61.8% retracement of the mentioned rally."