CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

AUD and NZD not Happy about Impeachment Inquiry

September 25, 2019 12:37 PM

AUD and NZD not Happy about Impeachment Inquiry

Its official:  The transcripts of President Trump’s call with the President of Ukraine have been released!  However, it may take some time for the various decision makers to comb through them and determine what exactly this means.  In the meantime, AUD/USD and NZD/USD have been under pressure all day.  Regardless as to what is actually in the transcripts, the Impeachment Inquiry into Trump does not bode well for a China-US trade deal.  Why would China want to come to the table and negotiate with a President who may be impeached?  So, as the possibility fades, restrictions and tariffs on China will continue.  This means that China’s economy may continue to slow, and by association, so will the economies of Australia and New Zealand. 

AUD/USD has been in a downward trend since January of 2018 (not shown).  Currently, the pair is in the middle of a downward channel since December of 2018 (minus the false breakdown on January 3rd of this year), below the 50 Day Moving Average of .6820 and approaching the August 6th lows at .6750.  Support below there comes in at .6700 near the bottom downward sloping trendline of the channel. 

Source: Tradingview, City Index

On a 240-minute timeframe, immediate horizontal support comes in at the days lows of .6740.  First resistance is .6760.  above there, the next meaningful resistance is the day’s highs ear .6800.  The RSI is near oversold levels at 30, however is not below that level.  This indicates there could still be room on the downside for AUD/USD to move.

Source: Tradingview, City Index

The RBNZ left rates on hold earlier (as expected) and they remain in the general work monetary policy view that scope for further fiscal and monetary stimulus remains “if needed”. No surprises. Therefore, the previous trend lower from July 2017 remains intact.   The pair is currently testing the September 2015 lows near .6245.  Although there is still time left in the day, NZD/USD is currently putting in a bearish engulfing candle as well.

Source: Tradingview, City Index

On a 240-minute chart, NZD/USD continues to put in lower lows and lower highs.  Next support level is the lows from September 23rd near .6260.  Resistance on the upside comes in at the day’s highs near .6350.  Next resistance level is the downward sloping channel trendline at .6375.

 Source: Tradingview, City Index

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024