28 Jul 2015
Kiwi strongest in Asia, UK Prelim Q2 GDP - Key
FXStreet (Mumbai) - A data-quiet Asian session with mixed price actions witnessed across the FX board. The US dollar rebounded from two-week lows reached versus its major rivals on Monday, hence driving USD/JPY higher beyond 123.50 levels. While the Antipodean currencies also staged a solid comeback from multi-year lows completely ignoring broad USD strength.
Key headlines in Asia
China stocks rout extends, SSEC – 4%
Key events for the day ahead - Westpac
Dominating themes in Asia - centered on JPY, AUD, NZD
Absolutely dry Asian session with Asian equities extending their sell-off tracking negative close on Wall Street overnight amid China turmoil. While Chinese markets extended in the red for the third straight session, albeit recovered heavy losses seen at open. Shanghai composite index is losing nearly -1% at the moment.
On the FX space, the Kiwi led the rally in the entire antipodean complex, correcting higher towards 0.6650 levels after falling to fresh six-year lows recently. The Aussie clinched the 0.73 barrier, as traders locked-in gains on AUD shorts ahead of key FOMC decision due out on Wednesday.
The dollar-yen pair swung between gains and losses, finally holding on to gains and trades firmer around 123.50. The pair once again bounced-off from lows just ahead of 123 handle and rebounded higher as the USD bulls jumped back into the game mainly driven by a short-covering rally after Monday’s sharp drop.
Heading into Europe - centered on EUR, GBP
There is nothing much to report in the European session ahead with all eyes set on the upcoming first estimate of the second quarter GDP figure from the UK.
The UK GDP - markets expect slightly higher 0.7% growth in Q2 quarter-on-quarter, than the 0.4% expansion in Q1, while annual GDP growth is expected to show 2.6% expansion compared to the 2.9% reported earlier.
Later in the New York, the data-dry event calendar extends with the US consumer confidence data to be reported. While 2nd tier data in Richmond Manufacturing Index will be published later in the session.
EUR/USD Technicals
Valeria Bednarik, chief analyst at FXStreet explained, "Technically the pair has broken above the roof of the daily descendant channel coming from 1.1435 by a handful of pips, opening doors for additional advances should the price accelerate again beyond the mentioned high.”
“The 1 hour chart shows that the 20 SMA has advanced further below the current price, whilst the technical indicators are retreating from extreme oversold levels. In the 4 hours chart, the technical indicators have lost their upward strength, but remain near overbought readings, far from signaling a downward move. At this point, only a break below 1.1050 will favor additional declines, back towards the 1.0960 region."
Key headlines in Asia
China stocks rout extends, SSEC – 4%
Key events for the day ahead - Westpac
Dominating themes in Asia - centered on JPY, AUD, NZD
Absolutely dry Asian session with Asian equities extending their sell-off tracking negative close on Wall Street overnight amid China turmoil. While Chinese markets extended in the red for the third straight session, albeit recovered heavy losses seen at open. Shanghai composite index is losing nearly -1% at the moment.
On the FX space, the Kiwi led the rally in the entire antipodean complex, correcting higher towards 0.6650 levels after falling to fresh six-year lows recently. The Aussie clinched the 0.73 barrier, as traders locked-in gains on AUD shorts ahead of key FOMC decision due out on Wednesday.
The dollar-yen pair swung between gains and losses, finally holding on to gains and trades firmer around 123.50. The pair once again bounced-off from lows just ahead of 123 handle and rebounded higher as the USD bulls jumped back into the game mainly driven by a short-covering rally after Monday’s sharp drop.
Heading into Europe - centered on EUR, GBP
There is nothing much to report in the European session ahead with all eyes set on the upcoming first estimate of the second quarter GDP figure from the UK.
The UK GDP - markets expect slightly higher 0.7% growth in Q2 quarter-on-quarter, than the 0.4% expansion in Q1, while annual GDP growth is expected to show 2.6% expansion compared to the 2.9% reported earlier.
Later in the New York, the data-dry event calendar extends with the US consumer confidence data to be reported. While 2nd tier data in Richmond Manufacturing Index will be published later in the session.
EUR/USD Technicals
Valeria Bednarik, chief analyst at FXStreet explained, "Technically the pair has broken above the roof of the daily descendant channel coming from 1.1435 by a handful of pips, opening doors for additional advances should the price accelerate again beyond the mentioned high.”
“The 1 hour chart shows that the 20 SMA has advanced further below the current price, whilst the technical indicators are retreating from extreme oversold levels. In the 4 hours chart, the technical indicators have lost their upward strength, but remain near overbought readings, far from signaling a downward move. At this point, only a break below 1.1050 will favor additional declines, back towards the 1.0960 region."