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Chang Wei Liang at DBS Group Research highlights that USD/CNH is easing toward 6.70 despite a stronger Dollar, with the Renminbi (RMB) supported by a lower USD/CNY fixing below 6.76. Source
The New Zealand Dollar (NZD) turns negative on Friday, down 0.11% against the US Dollar (USD), in a week that saw the Federal Reserve’s (Fed) first rate hike in three years, which underpinned the Greenback against most G8 FX currencies. The NZD/USD pair trades at 0.5725 after reaching a high of 0.5787.NZD/USD Price Forecast: Technical OutlookPrice action shows that sellers piled in strongly on Friday as NZD/USD spiked towards 0.5787, but the move reversed and the pair finished the week near Friday’s daily low.The Relative Strength Index (RSI) is about to turn oversold for the second time in September, meaning…
United Overseas Bank’s (UOB) Quek Ser Leang notes that USD/SGD has slipped into a short-term range phase after a sharp pullback, with intraday trading expected between 1.2735 and 1.2775. However, the 1–3 week outlook remains constructive, with the advance from late last week intact unless 1.2710 breaks, and upside levels at 1.2800 and 1.2835 still in focus.Dollar-Singapore range but bias positive”24-HOUR VIEW: Following the sharp rally two days ago, we highlighted yesterday that “while strong momentum could outweigh the current deeply overbought conditions, it remains to be seen whether USD can reach 1.2800.” We indicated the following: “support is at…
Christopher Wong at OCBC writes that the Malaysian Ringgit weakened during Thursday’s Asian session on a firmer US Dollar and higher US Treasury yields after the FOMC, with USD/MYR briefly trading above 4.10 in an orderly move. He notes some pressure eased as the Dollar and yields retreated and Oil pulled back. Wong expects cautious MYR trading if US yields and the Dollar rise again, but sees room for recent weakness to reverse as post-Fed moves settle and domestic fundamentals remain supportive.USD/MYR overbought as fundamentals support”MYR weakened on Thursday Asian time zone amid firmer USD and higher UST yields post-FOMC.…
USD/JPY advances sharply on Friday, trading around 156.95 at the time of writing, up 0.63% on the day. The pair has pulled back after reaching a daily high of 158.06 earlier in the day. The Japanese Yen (JPY) weakens significantly despite the Bank of Japan (BoJ) raising interest rates, while the US Dollar (USD) remains supported by expectations of further rate hikes from the Federal Reserve (Fed).The BoJ raised its policy rate by 25 basis points (bps), from 1% to 1.25%, its highest level in 31 years, in line with market expectations. The decision was approved by a seven-to-two vote,…
Brown Brothers Harriman’s (BBH) Elias Haddad highlights pronounced Japanese Yen (JPY) underperformance, with USD/JPY near 158.00 after a Bank of Japan rate hike to 1.25%. The Bank of Japan (BoJ) signaled cautious tightening, expecting only moderate growth and delayed achievement of 2% inflation. BBH concedes its bearish USD/JPY view is wrong and flags key resistance at 158.42 and 160.00, where FX intervention risks rise.Yen slump and BoJ caution”JPY is underperforming across the board, with USD/JPY up nearly two big figures to 158.00. The Bank of Japan delivered on expectations but kept the bar high for a more hawkish stance. As…
Expectations of higher global interest rates and Middle East risks weighed on the currency, while RBI intervention limited losses | Photo Credit: istock.com Rupee logged a weekly decline on Friday, hurt by expectations of higher global interest rates, while traders kept an eye on oil prices and said that central bank intervention would limit the currency’s downside around 96 per dollar.The rupee ended at 95.8750 per dollar, up modestly on the day but logged a 0.3% week-on-week fall.The US Federal Reserve and the Bank of Japan raised interest rates this week, joining other central banks in hiking rates as the…
United Overseas Bank’s (UOB) Quek Ser Leang notes USD/CHF remains in a consolidation phase after a sharp rally, with intraday trading expected between 0.8225 and 0.8265. He stays positive over the 1–3 week horizon but says it is still too early to confirm a break above 0.8300, while a move below 0.8185 would negate this view.Dollar consolidates below key resistance”24-HOUR VIEW: Following the sharp rally in USD that reached a high of 0.8265 two days ago, we indicated yesterday that “the sharp rally appears to be overdone, and USD is unlikely to rise much further.” We highlighted that USD “is…
At the interbank foreign exchange market, the rupee opened at 95.75 and gained slightly to trade at 95.73 against the greenback in early deals, up 16 paise from its previous close. The rupee rebounded from over two-month low levels, gaining 16 paise to 95.73 against the US dollar in early trade on Friday, buoyed by a buying trend in domestic equity markets and easing crude oil prices overseas.Forex analysts said the retreat of crude prices below the $104-per-barrel level from a steep rise earlier this week eased pressure on the Indian currency, even as US bond yields fell from record…
The NZD/USD pair struggles to capitalize on the previous day’s modest recovery gains and edges lower during the Asian session on Friday. Spot prices, however, hold above the lowest level since July 9, touched on Wednesday, and currently trade around the 0.5730 region, nearly unchanged for the day.The Reserve Bank of New Zealand’s (RBNZ) cautious stance counters the better-than-expected domestic GDP report published on Thursday and is seen as a key factor behind the New Zealand Dollar’s (NZD) relative underperformance. Meanwhile, the US Dollar (USD) struggles to lure buyers as US bond yields retreat further from multi-year highs amid receding…