AUD/USD: Fuel driving US dollar rally may be nearing exhaustion point
Too soon to turn bullish AUD/USD but be ready when the turn eventually comes.
USD/JPY, AUD/JPY, NZD/JPY: Hot inflation may not be enough for US dollar bulls
Unless we see a big upside surprise in Thursday's PCE inflation report it may be difficult for US bond yields to continue pushing higher, limiting the fuel that helped propel the US dollar higher over the past two months.
USD/JPY, Nikkei 225: BOJ negative rate watch shouldn’t rank highly for traders
Focusing on whether the Bank of Japan (BOJ) will scrap negative interest rates should be low on the list of priorities for USD/JPY traders to consider right now. It’s not as important as it’s portrayed to be, creating plenty of noise for an event that could pass without generating significant market volatility.
AUD/USD: Looking to sell rallies on expected inflation acceleration
Australian CPI is expected to accelerate in January, fitting with numerous other inflation readings around the developed world. While that sounds like a scenario that could benefit the AUD/USD on reduced RBA rate cut bets, don’t be surprised if an initial bounce is faded quickly on this occasion.
USD/JPY outlook hinges on continued US interest rate recalibration
The Japanese yen continues to dance to the tune of US interest rate expectations and broader risk sentiment, meaning events that may influence either of those areas should be the focus for USD/JPY traders this week.
Hang Seng, China A50 seeking fresh bullish catalysts to power market recovery
China’s state-endorsed equity market recovery continues to go from strength to strength, building upon a lengthy and growing list of measures being rolled out by policymakers designed to coerce traders into buying. Perhaps the broader bear market trend may be coming to an end?
Ducks have lined up for Nikkei 225 to test its 1989 high
If there was ever a day for Japan’s Nikkei 225 to overcome its demons and take out the record high set in December 1989, few screen better than today. The ducks look to have lined up for bulls. If we can’t set a new peak, it may provide a subtle warning that the market has run too hard, too fast.
NZD/USD: Respect the range until the Kiwi doesn’t
Some FX pairs like to gravitate towards big figures but not the NZD/USD. It’s clearly a fan of doing things in half big figure increment, proving plenty of opportunities to build trades around.
USD/JPY, USD/CNH uptrends under threat as dollar rally splutters
The US dollar rally since the start of the year is showing signs of fatigue, unable to build upon gains last week despite widening yield differential between the United States and other major nations, including in Asia.
AUD looks constructive against EUR, GBP following latest reversal
Attempts to ram EUR/AUD and GBP/AUD into higher trading ranges failed last week, suggesting the Aussie dollar may be starting to rediscover its mojo against some major European crosses.
Gold didn’t last long below $2000 despite higher US yields and dollar
Higher bond yields, stronger US dollar, no major escalation in geopolitical tensions in the Middle East. It’s the kind of backdrop you wouldn’t expect gold to thrive in. But its first probe below $2000 per ounce in 2024 didn’t last long, rebounding strongly to push back into the range it’s been operating in since mid-December.