Daily Insight: Kiwi Edging Lower, Nikkei Breaks To A High
Matt Simpson | Jun 19, 2014 04:17AM ET
ASIA ROUNDUP:
- NZD QDP fall short at 1% vs 1.2% expected which saw the Kiwi Dollar edge lower from yesterday's highs. However the number itsef is still string and bias remains bullish for Kiwi pairs due to capital inflows.
- Market consensus is for NZ to hike rates again in July
- BoJ member Morimoto: "Inflation expectations likely to strengthen"
- Australian exporters forecast higher export prices, according to Citi Group
- AUS200 posts biggest day gain in 2 months folllowing positive equity sentiment from US.
- {{178|Nikkei 225}} breaks to a 15-week high which could bring upwards pressure in USD/JPY
UP NEXT:
- SNB rate decision is likely to remain at -0.25%, but the press conference should provide extra volatility across CHF pairs. With USD/CHF looking heavy below 0.90 this is a pair to consider, but also AUD/CHF and NZD/CHF could provide bullish opportunities as money continues to support AUD and NZD.
- GBP Retail sales is forecast to be down and at a 4-month low, so if we see sales up (over 0%) we could see GBP/USD pop above 1.70. Poor sales could see GBPUSD retrace towards 1.697
TECHNICAL ANALYSIS:
AUD/CHF: Bullish Wedge breakout presents intraday Bull Flag
Get The News You Want
With CHF red news out tonight, any signs of weakness from the Swiss should play into the bullish hands of AUD and NZD.
AUD/CHF has produced a potential bullish flag; in line with the bullish wedge it broke out of yesterdays to target the 0.848 highs. In the event of a retracement (which would invalidate the bullish flag) then bullish setups could be considered above the daily pivot.
NZD/CHF: Symmetrical Triangle targets 0.7865 highs
NZD/CHF broke out of a symmetrical triangle to target 0.786, with intraday price action forming a potential swing low above the daily pivot.
If we see a deeper retracement then we may retest the upper trendline of the triangle (around Daily S1) but I would prefer to only consider intraday bullish setups above the daily pivot.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.