FXStreet – Fresh bids emerged for the EUR/USD pair at 1.1075 levels and pushed the prices back towards 1.11 handle as the phase of consolidation to the upside extends into mid-Asia.

EUR/USD finds support at 1.1075

Currently, EUR/USD trades -0.10% lower at 1.1094, recovering from a brief dip to 1.1075 –fresh session lows hit in the last hour. The main currency pair eases-off fresh four-month tops, although tries hard to regain 1.11 handle as the minor recovery in the US dollar, after the recent slide, is seen losing steam. The US dollar index trades +0.05% at 97.33 versus +0.15% seen previously.

Moreover, a better risk sentiment prevails in Asia following a sharp rebound in major Asian indices as oil extends its ongoing recovery mode. Thus, the demand for the safe-haven euro diminishes as markets prefer risky assets in a bid to take the yield advantage.

Looking ahead, the greenback is expected to remain pressured amid dwindling Fed rate hike bets for March as the US economic recovery remains fragile in wake of the global turbulence. While markets now await the weekly jobless claims and factory orders from the US for fresh cues on the major.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance is seen at 1.1145/50 (Feb 3 High/ round number). A break beyond the last, doors will open for a test of 1.1192/1.1200 (daily R1/ psychological levels). On the flip side, the immediate support is placed at 1.1036/27 (1h 20-SMA/ 200-DMA) below which 1.0987/77 (Jan 15 & 20 High) could be tested.

Fresh bids emerged for the EUR/USD pair at 1.1075 levels and pushed the prices back towards 1.11 handle as the phase of consolidation to the upside extends into mid-Asia.

(Market News Provided by FXstreet)

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FXStreet – The overnight recovery in the USD/JPY pair faltered near 118.25 levels and the major dropped sharply to session lows, before recovering some ground to now trade just shy of 118 handle.

USD/JPY back below 118 handle

The major struggles hard to regain lost footing and defends the bids over the last hours as the falling Japanese stocks continue to weigh the prices, while the rallying oil prices keep the recovery mode alive. At the time of writing, the major trades dead flat at 117.88, having failed to resist 118 handle.

The USD/JPY pair runs through fresh offer as the US dollar’s recovery against its major competitors appears to fizzle. Meanwhile, markets continue to track the sentiment on the global equities and on the oil markets ahead of the US datasets due for release later today.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 118.39/42 (1h 20-SMA/ daily pivot). A break above the last, the major could test 119 (round number). While to the downside, the immediate support is seen at 117.66/52 (daily low/ Jan 22 Low) and below that at 117.03 (Feb 3 Low).

The overnight recovery in the USD/JPY pair faltered near 118.25 levels and the major dropped sharply to session lows, before recovering some ground to now trade just shy of 118 handle.

(Market News Provided by FXstreet)

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FXStreet (Mumbai) – Gold futures on Comex cling to the bids, although ease slightly from fresh three-month highs reached at 1146.10 in the last US session.

Gold trades above all major DMAs

Currently, gold trades modestly flat at 1141.50, unable to extend beyond 1144.20 levels so far this session. The yellow metal remains underpinned by mixed trading seen on the Asian indices while a minor recovery seen in the US dollar against its major peers, appears to restrict the upside in gold.

Gold prices jolted to fresh three-month peaks the day earlier after the poor ISM and Markit services sector activity reports from the US disappointed big time, with markets losing faith in the Fed rate hike prospects this year. The CME group’s FED Watch tool reflected only 14% chance of a Fed hike in March, 18% in April and 24% in June. Gold tends to benefit in a low-interest rate environment as it is a non-interest bearing investment asset.

Looking ahead, all eyes remain on the US payrolls data due on Friday for further insights on the Fed’s outlook on the interest rates, which have major impact on the USD moves.

Gold Technical Levels

The metal has an immediate resistance at 1147.60 (Oct 30 High) and 1150 (psychological levels). Meanwhile, the support stands at 1137.83/ 1136.29 (daily pivot/ 1h 20-SMA) below which doors could open for 1131.50/1130 (5-DM/ round number).

Gold futures on Comex cling to the bids, although ease slightly from fresh three-month highs reached at 1146.10 in the last US session.

(Market News Provided by FXstreet)

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NZD/USD halts correction near key support at 0.6640

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FXStreet (Mumbai) – NZD/USD is seen oscillating back and forth in a 20-pips range over the last hours, having bounced-off strong support near 0.6640 region, the confluence of 50 & 100-DMA.

NZD/USD remains capped below 0.67 handle

Currently, the NZD/USD pair trades 0.08% higher at 0.6670, having posted day’s high at 0.6685 and day’s low at 0.6642. The Kiwi’s retreat from four-week tops found fresh bids at 50-DMA and from there the prices climbed back higher to hit daily highs, before meeting fresh supply and inching lower, where it now wavers.

The NZD/USD pair manages to remain on the bids, although lacks momentum as the mixed sentiment in Asia amid broad based US dollar recovery caps the gains in the bird. The USD index now rises 0.15% to 97.38, recovering slightly from fresh three-month lows struck at 96.89 in the last US session. Asian markets outside Japan are seen cheering the overnight rebound in the commodities’ prices, while oil prices trade mixed amid lack of fresh fundamental trigger.

Earlier on the day, RBNZ Assistant Governor John McDermott talked down the domestic currency, which also added to the retreat in the NZD/USD pair. McDermott noted that the central bank would be “happier” with a lower NZD.

Looking ahead, the black gold will continue to drive the currency markets, while the focus now remains on the upcoming US unemployment claims and factory orders data for fresh cues on the USD.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.6699/0.6700 (Feb 3 High/ round number), above which it could extend gains to 0.6729 (daily R1) levels. To the downside immediate support might be located at 0.6644/ 42 (100 & 50-DMA) and from there to 0.6602/00 (200-DMA/ psychological levels).

NZD/USD is seen oscillating back and forth in a 20-pips range over the last hours, having bounced-off strong support near 0.6640 region, the confluence of 50 & 100-DMA.

(Market News Provided by FXstreet)

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FXStreet (Mumbai) – The AUD/JPY’s recovery from four-day lows ran out of legs just short of 50-DMA at 85 levels and the prices drifted lower, as the yen appears to regain strength after a minor profit-taking spree.

AUD/JPY holds above 10-DMA

Currently, the AUD/JPY pair rises 0.12% at 84.62, retreating from fresh session highs printed at 84.94, just a whisker away from 50-DMA barrier. The AUD/JPY cross reverses the spike from daily highs and edged lower, as the AUD/USD pair faces fresh selling pressure as the greenback corrects slightly higher after the recent sell-off.

However, the downside remains cushioned as markets unwind their yen shorts after USD/JPY hit fresh two-month lows at 117.03, following worse than expected US services PMI reports, which triggered extensive USD slump across the board.

Meanwhile, the pair will continue to track the USD moves as well as the oil price action ahead of the US weekly jobless claims and factory orders data due later in the NY session.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 84.94/85 (daily high/ 50-DMA) and above which it could extend gains to 86.17/35 (Feb 2 High/ 100-DMA). To the downside immediate support might be located 84.18/14 (daily pivot/ 1h 200-SMA) below that at 83.57/17 (daily S1/ Feb 3 Low).

The AUD/JPY’s recovery from four-day lows ran out of legs just short of 50-DMA at 85 levels and the prices drifted lower, as the yen appears to regain strength after a minor profit-taking spree.

(Market News Provided by FXstreet)

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FXStreet – Most stocks markets in Asia rebounded from the previous sell-off as the oil prices recovered sharply underpinned by broad based US dollar slump and thus, lifted sentiment across the financial markets. However, the Japanese stocks bucked the trend and came under renewed selling pressure this Thursday.

USD sell-off boosts sentiment

The Japanese benchmark index, the Nikkei 225 slips -0.67% to 17,080 points as the overnight rise in the yen amid US dollar sell-off globally hit the exporters’ stocks badly and weighed on the index. USD/JPY skid to fresh two-month lows to 117 handle in the overnight trades and now attempts minor recovery near 118 levels. The greenback slump across the board as markets appear to lose faith in further rate hikes stance by the Fed as the US economic recovery continues to lose steam.

On the other, the Australian markets saw a relief rally on the back of commodities’ rebound, with the ASX 200 index rallying +1.43% to trade at 4,952. Metals and mining stocks benefited the most, while gold producers were also offered some relief after the bullion rose to three-month highs above $ 1140.

The Chinese equities also joined the global rally amid ongoing liquidity injections and stable yuan fixes by the PBOC. The benchmark Shanghai Composite index jumps 1.31% at 2,700. Shenzhen’s CSI 300 index rises 1.48%, while China A50 index advances 1.44%.

Most stocks markets in Asia rebounded from the previous sell-off as the oil prices recovered sharply underpinned by broad based US dollar slump and thus, lifted sentiment across the financial markets. However, the Japanese stocks bucked the trend and came under renewed selling pressure this Thursday.

(Market News Provided by FXstreet)

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FXStreet (Barcelona) – Analysts at ANZ explained that Crude oil prices were sharply higher and noted the action in the commodities sector in general.

Key Quotes:

“The bounce in crude oil prices was extreme, with prices up 10% from the low. Prices rose with a decline in the US dollar and despite steep gains in US crude inventories.

Stockpiles rose to more than 500m bbl for the first time since 1930. EIA data suggest US crude stocks climbed 7.79m bbl to 502.7m bbl last week. The increase was more than double what the market was expecting.

Base and precious metal prices were strong. The gold price remained resilient amid safe haven buying. Physical gold demand from key buyers is also strong. In a recent announcement, China’s Gold

Association said domestic gold consumption for 2015 rose 3.7% to 985.9t. We believe the weaker yuan and rising global growth concerns will continue to attract the interest of Chinese buyers in 2016.

Iron ore prices were stronger. The iron ore price continues to gain before the holiday season but liquidity is thin, with steep declines in trading volumes. On the corporate side the rating agencies continue to downgrade steel companies. In a recent move Moody’s cut JSW Steel Limited’s rating by two notches.”

Analysts at ANZ explained that Crude oil prices were sharply higher.

(Market News Provided by FXstreet)

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FXStreet (Guatemala) – Analysts at Westpac offered details of the key forthcoming events for today.

Key Quotes:

“The Bank of England ends its policy meeting and we also have the quarterly press conference on the Inflation Report. While the first hike still looks some way away as inflation remains low, in Jan the MPC voted 8-1 to keep rates steady at 0.5%, with McCafferty dissenting in favour of a hike. The Inflation Report will provide an update on the BoE’s CPI and GDP projections.

US Dec factory orders are expected at -2.8% though should see only a small revision to durable goods orders. We hear from FOMC voting members Rosengren in the Asian afternoon on regulation and Mester around NY close on the economy and monetary policy. Kaplan also speaks on the global economy.”

Analysts at Westpac offered details of the key forthcoming events for today.

(Market News Provided by FXstreet)

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