Daily Insight: Narrow Ranges Across Majors, Kiwi Sees Strongest Demad
Matt Simpson | Mar 26, 2014 04:51AM ET
MARKET SNAPSHOT:
ASIA HANDOVER
Rumours of a bank run in China forced the PBoc to calm the panic today as the rumour began to spread. Hundreds of depositors line up at Jiangsu Sheyang Rural Commercial Bank to withdraw cash upon hearing of the banks supposed insolvency.
The RBA released their bi-annual FSR (Financial Stability Review) which hinted that whilst they are comfortable with the increased housing prices there is room for the situation to get worse.
FX:
- Narrow ranges across the majors but the Kiwi has seen the strongest demand throughout the session and tested yesterday's highs against the Greenback.
- AUD/USD tested 0.917 handle - see today's video for more info;
- AUD/NZD broke beneath yesterday's low temporarily which produced a Shooting Star reversal at yesterday's close.
- USD/CNH trades at a 2-day high following yesterday's Doji
- NZD/JPY trades to a 3-day high
INDICES:
- AUS200 up 0.5% at 9-day high
- Hang Seng up 0.8% to a 4-day high
- Sideways trading Nikkei 225 for 4th consecutive session
COMMODITIES:
- Narrow range on WTI futures following 3 failed attempts to break above 100 resistance
- Brent up 0.3% but within yesterday's range
- Copper appears to be testing $3.00 resistance again - it broke through this level yesterday so bullish momentum appears to be building
CHARTS OF THE DAY:
AUD/USD: Above 0.917 targets 0.9200
Get The News You Want
This pairs (similar to NZD/USD) has provided multiple long entries with repeated patterns between messy, sideways correction followed by clean and fast upside break. However notice that each time this occurred we have also seen an aggressive downside move before the eventual spring board to the next target.
Taking into account the strong trend and positive data from NZD I do fancy the support zone holding.
However a break below 0.9250 could confirm a change in sentiment.
AUD/USD: Above 0.917 targets 0.9200
We finally saw the upside break of 0.917 (since I recorded today's video) so as long as we stay above this level I suspect London may target this level, after their obligatory spikes of course....
General Advice Disclaimer: Trading in the Foreign Exchange market involves a significant and substantial risk of loss and may not be suitable for everyone. You should carefully consider whether trading is suitable for you in light of your age, income, personal circumstances, trading knowledge, and financial resources. Only true discretionary income should be used for trading in the Foreign Exchange market. Any opinion, market analysis or other information of any kind contained in this email is subject to change at any time. Nothing in this email should be construed as a solicitation to trade in the Foreign Exchange market. If you are considering trading in the Foreign Exchange market before you trade make sure you understand how the spot market operates, how Think Forex is compensated, understand the Think Forex trading contract, rules and be thoroughly familiar with the operation of and the limitations of the platform on which you are going to trade.
A Financial Services Guide ( FSG) and Product Disclosure Statements (PDS) for these products is available from TF GLOBAL MARKETS (AUST) PTY LTD by emailing compliance@thinkforex.com.au . The FSG and PDS should be considered before deciding to enter into any Derivative transactions with TF GLOBAL MARKETS (AUST) PTY LTD. Please ensure that you fully understand the risks involved, and seek independent advice if necessary. Also, see the section titled “Significant Risks” in our Product Disclosure Statement, which also includes risks associated with the use of third parties and software plugins. The information on the site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. 2013 TF GLOBAL MARKETS (AUST) PTY LTD. All rights reserved. AFSL 424700. ABN 69 158 361 561. Please note: We do not service US entities or residents.
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.