Daily Market News By FXNET

JAPANESE YEN LOWER AFTER A DAY’S HIKE

On Thursday the Japanese yen fell lower than the U.S. dollar after having hiked considerably on Wednesday.
The Japanese Yen rose against its U.S. counterpart on Wednesday following comments by Bank of Japan (BOJ) Governor Haruhiko Kuroda saying the yen is not likely to get weaker.
“Most people might think that Kuroda would like to slow the dollar/yen’s moves, but I think it will go back to moving on fundamentals” said Masashi Murata, Currency Strategist at Brown Brothers Harriman.
Kuroda had also commented about the expected U.S. rate hike which he said is not bound to affect the Japanese Yen negatively.
“The Fed is getting ready to hike rates, and there is some chance the BOJ will ease further. So this monetary policy divergence should support the dollar/yen in the medium term, maybe this summer”.
The USD/JPY pair added 0.46 percent and reached 123.19.
The Yen was also lower than the Euro, and the EUR/JPY pair added 0.27 percent and traded at 139.31.

EURO ENJOYS SLIGHT GAIN BEFORE WEAKENING

During Wednesday’s trading the Euro enjoyed considerable gains as an agreement between Germany and Greece was reportedly very close and a cash-for-reform deal was on the horizon.
The EUR/USD pair gained 0.40 percent reaching 1.1324 on Wednesday and traded in the range of 1.1264 and 1.1386. It was expected to find support at 1.0913 and resistance at 1.1450.
By Thursday the U.S. dollar trumped both the yen and the euro and the EUR/USD pair was lower at 1.1305.
It is reported that German Chancellor Angela Merkel is offering the cash for reform deal if Greece agrees to at least one of the reforms including a higher imposition of taxes, issuance of lower retirement benefits and increased state asset sales.
In return the deal will offer Greece a 7.2 billion euro loan which can cover Greece’s loan payment to the International Monetary Fund (IMF) which is due on the 30th of June.
“I really like Greek tragedy but now we must move to a happy ending” EU Economic affairs commissioner Pierre Moscovici told RTL radio on Wednesday, giving hope that the end might be near, he added “we are close to the landing strip. There is political will, we can and must succeed”.
On Monday Moscovici met with Greek Finance Minister Yianis Varoufakis where the two were reported to have had a friendly conversation and were on the same page. Varoufakis said that they had “long, productive conversations”. He also added that responsibility falls on the shoulders of both Greece and its Eurozone lenders.
“These are difficult moments for the European Union and the Eurozone in particular. It is the duty of politicians to take their responsibility to a higher level in order to try to achieve an agreement that is absolutely essential” he said.
Elsewhere Greece’s negative impact on Europe’s currency has been balanced with economic growth in other parts of Europe.
Yesterday’s euro hike was supported by the release of reports showing an increase in percentage for Yields on German and Italian 10-year bunds. Germany being Europe’s largest economy has a big impact on the currency and can have a greater affect than Greece.

Fundamental Analysis 25/June

The Euro was majorly affected by Greece’s meeting with its creditors that ended in a rejection of the proposal due to differences. Greece is ever close to the June 30th deadline by which it has to reach a deal to unlock funds and repay the International Monetary Fund (IMF) loan to avoid defaulting on its debt.

The Euro lost 0.18 percent against the yen and the EUR/JPY pair fell from 138.76 (Late Wednesday’s number) to 138.50. Even against the Japanese Yen the Euro was weaker and the EUR/JPY pair fell from 138.76 (Late Wednesday’s number) to 138.50.
The U.S. dollar was slightly weaker than the Japanese yen the USD/JPY pair fell to 123.56.

Against the British pound the dollar was also stronger and the GBP/USD pair lost 0.11 percent and traded at 1.5716.
The USD/CHF pair lost 0.11 percent and fell to 1.5716, the AUD/USD lost 0.54 percent and was at 0.7695.
The U.S. dollar index which measures the greenback against a basket of six currencies was slightly higher at 95.53.
Brent Crude for August delivery added 2 cents and was at 63.51 dollars a barrel.

“For today we continue to expect prices to move sideways with a strong resistance at 61.80 dollars and 65 dollars for West Texas Intermediate (WTI) and Brent, and support 50 dollars and 62.38 dollars” said Phillip Futures in a note.

Gold futures for August delivery added 0.26 percent on the Comex of the New York Mercantile Exchange and were at 1,176.00 dollars a troy ounce during Thursday’s morning European Trading hours. It was expected to find support at 1,162.10 dollars and resistance at 1,200.80 dollars.

Elsewhere on the Comex silver futures for July lost 0.08 percent and were at 15.84 dollars a troy ounce and Copper for July delivery lost 0.27 percent and was at 2.618 dollars a pound.

MSCI’s index of Asia Pacific shares outside Japan lost 0.3 percent. Japan’s Nikkei Stock index lost 0.5 percent. On Wednesday optimist around the Greek situation had pushed the index close to its t 20 year high.

European shares were also dimmed with Britain’s FTSE 100 opening 11 to 12 points lower, Germany’s DAX was expected to lose 41 points and France’s CAC 40 to lose 19 points.

On Thursday the FTSEurofirst 300 lost 0.5 percent and was at 1,569.82 points, Hennes & Mauritz lost 2.2 percent.
Elsewhere U.S. stock futures were higher by 0.2 percent in Thursday’s early Asian trade.

Markets React to Chinese Declining Market and PBOC's Decision to Cut Rates

The US dollar was higher against the euro and yen for the second consecutive day after having lost momentum on Monday amidst china’s market decline. The dollar was mainly supported by a positive consumer confidence index. Markets were broadly affected by The People’s Bank of China’s (PBOC) decision to cut interest rates late on Tuesday and lower the amount of reserves that the banks must hold in an attempt to save the market from collapsing. The Chinese market had lost almost 20 percent in three days.

The U.S. Conference Board said on Tuesday that its index of consumer confidence was at its seven months high at 101.5 for August after being at 91.0 in July.
The USD/JPY pair was 0.5 percent higher at 119.5 and EUR/USD lost 0.18 percent to 1.1499.

NZD/USD added 0.29 percent trading at 0.6493, the pair was expected to find support at 0.6423 and resistance at 0.6567.

The AUD/NZD pair was also lower losing 0.37 percent and trading at 1.0972. The Kiwi was supported by a positive trade balance.

EUR/NZD lost 0.55 percent to trade at 1.7692.

The U.S. dollar index which measures the greenback against a basket of six other major currencies added 0.18 percent to trade at 94.09 recovering from Monday’s 92.52.

Brent for October delivery on the ICE Futures Exchange in London was 25 cents higher at 43.46 dollars a barrel and U.S. Crude for October delivery on the New York Mercantile Exchange was 26 cents higher at 39.57 dollars a barrel.

Gold futures for December delivery on the Comex of the New York Mercantile Exchange added 0.37 percent to 1,142.50 dollars a troy ounce during U.S. morning trading hours on Wednesday. Overnight gold prices had fallen sharply as the dollar gained strength following a positive U.S. consumer report.

Elsewhere on the Comex silver futures added 0.34 percent to 14.660 dollars a troy ounce and copper futures lost 0.20 percent to 2.259 dollars a pound after having fallen to 2.209 on Tuesday their lowest level in six years.

The dollar rebound from yesterday’s slump and gained momentum despite ongoing concerns over China’s economic slowdown and, US small business borrowing falling for July.

Economic reports on Tuesday showed that manufacturing activity in China contracted at its fastest rate in three years for August, and the service sector activity was also slower raising concerns about global health as the world’s second largest economy shrinks.

The USD/JPY pair adding 0.53 percent to trade at 119.97. EUR/USD lost 0.46 percent trading at 1.1265, after the euro had gained against the dollar on Tuesday as manufacturing activity in Europe was seen weaker than expected.

NZD/USD added 0.47 percent during early Asian trade hitting 0.6369 and consolidating at 0.6360. The pair was expected to find support at 0.6244 and resistance at 0.6481.

AUD/USD added 0.33 percent to 0.7039 after the Australian Bureau of Statistics reported that the country’s Gross Domestic Product (GDP) added 0.2 percent for its second quarter, lower than expectations of a 0.4 percent growth and after a 0.9 percent expansion in the first quarter. The AUD/USD pair was expected to find support at 0.6854 and resistance at 0.7156.

The British Pound was at its 3 month lows after the release of the Markit construction purchasing managers’ index which had gone up to 57.3 for August from July’s 57.1 but failed to reach the expected 57.5. The index still indicated expansion as it read above 50.0.
GBP/USD was at 1.5291 from last night’s 1.5271.

The U.S. dollar index which measures the greenback against a basket of six other major currencies added 0.32 percent to trade at 95.70.
Investors are looking ahead for Friday’s U.S. non-farm payrolls. “U.S. payrolls will be the focus, but I doubt it will change the current debate over whether the Federal Reserve will hike rates in the near term or not” said Alvin Tan from Societe Generale.

Expectations are on a job growth of 220,000 for August, after July’s 215,000 increase in July. Unemployment rate is expected to fall from 5.3 percent to 5.2 percent.
Crude oil for October delivery was 2.2 percent lower on the New York Mercantile Exchange trading at 44.41 dollars a barrel during European morning trading hours, and once again falling below the 50 dollar benchmark.

Brent Oil for October delivery on the ICE Futures Exchange in London lost 1.8 percent to trade at 48.67 dollars a barrel. On Tuesday Brent had already lost 8.48 percent.

The U.S. dollar which was weaker than most currencies for the past week saw some small gains as all eyes turn to the Fed meeting which begins today and ends tomorrow, and will announce interest rates decisions.

EUR/USD fell on Tuesday afternoon tumbling below the 1.13 level for the first time in four sessions.

The pair traded between 1.1259 and 1.1321 during Tuesday's session, it settled at 1.1269, 0.48 percent lower. EUR/USD was expected to find support at 1.1017 and resistance at 1.1562. Previously the Euro had been gaining for eight straight days before breaking the cycle on Tuesday as markets anticipated the Fed Meeting which convenes today and will go on till tomorrow.

Data released on Tuesday showed a 0.2 percent increase in retail sales for August which fell short from the 0.3 percent increase expectations. Core retail sales excluding automobiles added 0.1 percent in August lower than the expected 0.2 percent. US industrial production fell by 0.4 percent for August more than the expected 0.2 percent decline.

Last night AUD/USD lost 0.10 percent trading at 0.7134, while USD/JPY lost 0.05 percent to 120.36.

The U.S. dollar index which measures the greenback against the basket of six major currencies added 0.06 percent to 95.70 on Tuesday evening.

US West Texas Intermediate (WTI) crude added 32 cents on Wednesday on the New York Mercantile Exchange trading at 44.91 dollars per barrel, while Brent futures on the ICE futures exchange added 9 cents trading at 47.84 dollars a barrel.

US crude was supported by the American Petroleum Institute's (API) announcement that there has been a 3.1 million barrel decline in crude inventories instead of expectations for a rise. Official data will be released later in the day.

Gold futures for December delivery on the Comex of the New York Mercantile Exchange added 0.14 percent trading at 1,104.10 dollars a troy ounce.

Silver futures on the Comex added 0.10 percent trading at 14.340 dollars a troy ounce, while copper for December delivery lost 0.10 percent to 2.425 dollars a pound.

EUR/USD saw some gains on Wednesday afternoon after falling in the morning. The pair fluctuated between 1.1214 and 1.1321. It settled 0.20% up at 1.1288. Over the last month of trading the Euro has gained 1.75% in value against the American dollar. EUR/USD was expected to gain support at 1.1015 and resistance at 1.1625.
The office of National Statistics said U.K. retail sales were 0.2% higher in August as expected. They were 3.7% up from the same month the previous year, just a tick below the forecast 3.8%. Core retail sales which exclude automobile sales added 0.1% Month on Month for August and 3.6% Year on Year. GBP/USD rose up to 1.5526 and consolidated at 1.5495.

Statistics New Zealand showed that the Gross Domestic Product (GDP) of the country was 0.4% higher for the second quarter (April-June) slightly lower than expectations of a 0.5% increase. The first quarter had seen a 0.2% increase. NZD/USD lost 0.14% consolidating at 0.6358.

The Swiss National Bank (SNB) announced its decision to keep its benchmark interest rate unchanged at -0.75% as expected. The bank also left the target range for the three months libor unchanged between -1.25% and -2.25%. The decision came after the State Secretariat for Economic Affairs said its expectation for Switzerland's economic growth is at 0.9% for 2015 and 1.5% for 2016. USD/CHF fell 0.41% trading at 0.9673.

The US dollar Index which measures the greenback against a basket of six other major currencies lost over 0.40% on Wednesday to an intraday low of 95.30.
US West Texas Intermediate (WTI) crude were at 47.13 dollars per barrel at 4:30 GMT unchanged from their previous close, Brent was 6 cents higher at 49.81 dollars per barrel.

Gold futures for December delivery on the Comex of the New York Mercantile Exchange were at 1,118.3 dollars an ounce falling from overnight’s 1,122.4.
Silver Futures for December delivery lost 0.24% falling to 14.85 dollars an ounce. Copper for December delivery lost 0.62% to trade at 2.437 dollars a pound.
The interest rate decision will be announced by the Fed at 2 PM EST, 6 PM GMT.

The US dollar was steady to lower on Tuesday after recovering losses on Monday. Market volatility surrounding the Fed’s interest rate hike decision was the leading reason behind most currency movements, and now the Fed is coming under attack for prompting uncertainty.

EUR/USD lost 0.17 percent trading at 1.1172, its lowest level since September 9th.

Australia's second quarter house price index rose by 4.7 percent, higher than the 2.5 percent quarter on quarter rise. AUD/USD added 0.13 percent trading at 0.7140. The US dollar held strong despite yesterday's disappointing housing data report. USD/JPY lost 0.16 percent to 120.37.

The National Association of Realtors said on Monday that existing home sales lost 4.8 percent to an annual rate of 5.31 million units. Expectations were on a 5.51 million unit pace of home sales for August. From a year ago sales were up 6.2 percent. Nationwide the median home price fell slightly in August to 228,700 dollars, 4.7 percent higher than a year earlier but left the year over year rate at its lowest since August 2014. In the West, prices were up by 7.1.

The US dollar index which measures the greenbacks’ strength against a basket of six major currencies lost 0.07 percent overnight to 95.97 then rose to 96.15.

Overnight West Texas Intermediate (WTI) crude futures lost 48 cents trading at 46.20 dollars per barrel, while Brent futures were 45 cents lower at 48.47 dollars a barrel. Prices fell after surging on Monday following a decline in US rigs drilling for oil. Prices are expected to rise according to Reuters analyst Wang Tao, who says Brent will rise to 49.70 dollars per barrel and WTI could reach 47.78 based on Fibonacci retracement indicators.

Gold futures for December delivery on the Comex of the New York Mercantile Exchnage traded at 1,133 dollars a troy ounce. Silver for December delivery lost 0.24 percent to 15.185 dollars a troy ounce, while Copper for December lost 0.27 percent to 2.383 dollars a pound.

EUR/USD fell late on Tuesday trading between 1.1114 and 1.1207 before settling at 1.1132, 0.51 percent lower for the session. This comes after the pair had gained for eight straight sessions. The pair was expected to find support at 1.1086 and resistance at 1.1713.

China's Caixin Manufacturing index for September fell to 47 from August's 47.3, falling to a 78 month low. In response the Aussie fell weaker as Australia is China's biggest importing partner, AUD/USD lost 21 percent trading at 0.7075 late on Tuesday, while USD/JPY added 0.05 percent to 120.22.

The US dollar index was 0.15 percent higher at 96.64.

The Asia Development Bank (ADB) lowered its 2015 economic growth projections for China from 7.2 percent to 6.8 percent. The bank also revised its economic growth expectations for India from 7.8 percent to 7.4 percent. Economic growth for the entire Asian region was reduced from 6.3 percent to 5.8 percent, as for the Southeast Asian Region forecast was lowered to 4.4 from 4.9.

Gold futures for December delivery on the Comex of the New York Mercantile Exchange lost 0.12 percent trading at 1.123.50 dollars a troy ounce following the drop in China's Manufacturing Index (considering china is one of the world's largest gold importers). Silver for December lost 0.24 percent to 14.720 dollars a troy ounce, while copper for December delivery lost 0.39 percent to 2.295 dollars a pound understandable as China accounts for approximately 40 percent of all copper consumption in the world.

The American Petroleum Institute (API) said that crude stocks were lower by 3.7 million barrels for last week better than the expected 700,000 barrel drop. West Texas Intermediate (WTI) crude for November lost 0.33 percent trading at 46.20 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery on the Intercontinental Exchange (ICE) traded between 47.70 and 49.17 dollars a barrel before settling at 49.03 dollars, 0.22 percent higher for the day. Later in the day the US Department of Energy will release numbers on crude and refined product stockpiles.

Markets were mainly affected by European Central Bank (ECB) President Mario Draghi’s speech. Draghi spoke in Brussels before the European Parliament's Committee on Economic and Monetary Affairs on Wednesday saying that the future of the quantitative easing program is difficult to forecast.
"more time is needed to determine whether the loss of growth momentum in emerging markets is of a temporary or permanent nature and to assess the driving forces behind recent episodes of severe financial turbulence" he said.

Following Draghi's speech EUR/USD added 0.44 percent to 1.1105 and was expected to find support at 1.1086 and resistance at 1.1209. EUR/NZD lost 0.17 percent to 1.7785. EUR/GBP lost 0.2 percent to 73.29 pence.

Elsewhere total British car production rose almost 41 percent to 99.919 cars for August according to the Society of Motor Manufacturers and Traders (SMMT).
The greenback was 0.2 percent lower than the Japanese yen in early Asian trading on Thursday at 120.03 yen.

AUD/USD remained close to its two and a half week lows at 0.6992 consolidating at 0.6997. The pair was expected to find support at 0.6942 and resistance at 0.7095.

NZD/USD added 0.26% to 0.6294. The pair was expected to find support at 0.6233 and resistance at 0.6405.

New Zealand's trade balance for August widened to a deficit of 1.035 billion NZ dollars month on month, higher than the 850 million NZ dollars deficit seen. Late on Wednesday NZD/USD added 0.17 percent to 0.6287.

The US dollar index which measures the greenback against a basket of six major currencies was up 0.1 percent during Thursday’s early Asian trade at 96.173; still below Wednesday’s two and a half week high of 96.548.

The Energy Information Administration (EIA) released data on Wednesday showing that U.S. crude oil stocks were 1.9 million barrels lower for the week ending September 18th more than expectations of a 533,000 barrels decrease.

Oil prices gained momentum following the bullish news with Brent climbing 29 cents to 48.04 dollars a barrel. US Crude added 33 cents to 44.81 dollars a barrel.
Gold futures for December delivery on the Comex of the New York Mercantile Exchange lost 0.04 percent trading at 1,131.00 dollars a troy ounce. Elsewhere on the Comex Silver for December delivery added 0.04 percent to 14.795 dollars a troy ounce while Copper for December added 0.21 percent to 2.299 dollars a pound.

Markets were affected on Wednesday by low data from China which highlighted the risk global economy can have on the US and supported the delay of the rate hike.
Chinese consumer inflation softened more than expected in September thanks in part to slower food price growth, the Consumer Price Index (CPI) added only 1.6 percent compared to a year earlier while the Producer Price Index (PPI) fell nearly 6 percent as it had in August, its biggest drop in six years. Third quarter Gross Domestic Product (GDP) will be released next week and is expected to fall below 7 percent; its lowest since the start of the economic crisis.
EUR/USD added 0.22 percent to 1.1404. USD/JPY lost 0.19 percent to 119.50 and USD/CHF lost 0.15 percent to 0.9564. GBP/USD added 0.75 percent to 1.5363. AUD/USD was steady at 0.7241, NZD/USD added 1.29 percent to 0.6729 and USD/CAD lost 0.14 percent to 1.3018.
The UK Office for National Statistics released unemployment figures showing that unemployment rate fell to its lowest second quarter number since 2008 at 5.4 percent from 5.5 percent in the first quarter. The number of people claiming unemployment benefits rose by 4,600 to a total of 796,000, expectations had been on a 2,100 decline.
The US dollar index which measures the greenback’s strength against a basket of six major currencies was 0.23 percent lower to 94.58.
Brent oil for December delivery on the ICE Futures Exchange lost 0.16 percent to 49.61 dollars a barrel during Wednesday’s morning European trading hours.
Crude oil for November delivery lost 0.04 percent on the New York Mercantile Exchange to 46.64 dollars a barrel.
Gold for December delivery on the Comex of the New York Mercantile Exchange rallied through four straight sessions to hit their three months high at 1,174.50 dollars a troy ounce, and then traded at 1,173,000, a 0.65 percent increase.
Elsewhere on the Comex Copper for December delivery lost 0.17 percent to 2.384 dollars a pound.

The US commerce department said that Gross domestic product (GDP) increased at a 1.5 percent annual rate after expanding 3.9 percent in the second quarter, the Commerce Department said on Thursday. Economists however expect growth to pick up in the fourth quarter given strong domestic fundamentals.

The number of individuals filing for initial jobless benefits in the week ending October 24 increased by 1,000 to 260,000 from the previous week’s total of 259,000. Analysts had expected jobless claims to rise by 4,000 to 263,000.

USD/JPY was 0.16 percent lower at 120.89, USD/CAD was almost unchanged at 1.3238. The pair was expected to find support at 1.3085 and resistance at 1.3334.
Following the releases EUR/USD added 0.19 percent to 1.0941.

GBP/USD was at 1.5256, USD/CHF lost 0.29 percent to 0.9914. A report by the Bank of England showed that the total net lending to individuals increased by 4.9 billion pounds last month more than the expected 4.4 billion pounds.

AUD/USD lost 0.40 percent falling to 0.7089 and NZD/USD lost 0.12 percent to 0.6694.

The US dollar index which measures the greenback against a basket of major currencies was steady at 97.61.

Following the releases EUR/USD added 0.19 percent to 1.0941.

EUR/CAD was 0.10 percent higher to 1.4425.

Crude oil for December delivery lost 1.34 percent on the New York Mercantile Exchange during European morning hours on Thursday, Brent oil for December delivery on the ICE Futures Exchange lost 1.15 percent to 48.48 dollars a barrel.

The US Energy Information Administration (EIA) said that crude inventories were higher by 3.37 million barrels a week, and gasoline inventories decreased by 1.1 million barrels compared to expectations for a decline of 0.9 million barrels. Distillate stockpiles fell by 0.3 million barrels.

Gold for December delivery on the Comex of the New York Mercantile Exchange lost 1.88 percent trading at 1,154.000 dollars a troy ounce.

Research group Markit said that the seasonally adjusted Markit/CIPS Service Purchasing Managers Index increased to 54.9 last month from 53.3 in September. Expectations were for the index to rise to 54.9.

GBP/USD rose to 1.5432 from 1.5416 after the release of the report, while EUR/GBP rose to 0.7080 from 0.7087.

Markit surveys showed that quarterly economic growth in the Eurozone was around 0.4 percent as expected by a Reuters poll which was published in October. Markit’s final October Composite Purchasing Managers’ Index (PMI) came in at 53.9, less that the expected 54.0.
EUR/USD lost 0.34 percent to 1.0926 and EUR/JPY lost 0.25 percent to 132.4.

NZD/USD hit 0.6633 during late Asian trade and consolidated at 0.6658 0.09 percent lower. The pair was expected to find support at 0.6618 and resistance at 0.6782.

Statistics New Zealand reported on Tuesday that the number of employed people by 0.4 percent in the third quarter confounding expectations for a 0.4 percent rise after a 0.3 percent gain in the second quarter.

The U.S. will release later Wednesday ADP jobs reports for October and trade balance data while the Institute of Supply Management will release its report on service sector growth for October, while on Friday US nonfarm payrolls will be released and expectations are on a growth of 182,000 jobs in October after an increase of 142,000 in September, while unemployment is expected to be steady at 5.1 percent.

In addition, Fed Chair Janet Yellen will appear before a congressional committee on Wednesday to testify on the U.S. central bank's role in overseeing the country's financial system.

The US dollar index which measures the greenback against a basket of six major currencies was up 0.24 percent the 97.50.

Crude oil for December delivery lost 0.56 percent on the New York Mercantile Exchange trading at 47.63 dollars a barrel during European morning hours. A day earlier oil on the NYMEX added 3.81 percent.

Brent for December delivery on the ICE Futures exchange in London lost 0.95 percent trading at 50.06 dollars a barrel. On Tuesday Brent prices added 3.59 percent.

Gold for December delivery on the Comex of the New York Mercantile Exchange added 0.41 percent trading at 1,118.70 dollars a troy ounce during European morning hours.

Elsewhere on the Comex copper for December delivery added 0.38 percent to 2.350 dollars a pound.

Greenback Sentiment Shaky after Job Reports

On Monday, the Australian and New Zealand dollars fell against the US dollar as the dollar stayed fragile after Friday’s U.S jobs report.
AUD/USD slipped 0.42% to 0.7406, after moving up to its eight-month highs of 0.7445 on Friday.

According to the Labor Department, the US economy added 242,000 new jobs last month, exceeding expectations for wage growth of 190,000.

The unemployment rate remained at an eight-year low of 4.9%, in line with forecasts.

Average hourly earnings went lower by 0.1% during February, below a 0.5% reading in January. The decrease in average earnings lowered the annual gain in incomes to 2.2% from 2.5% in January. As a result, consumer inflation is likely to stay muted. Federal Reserve policymakers are keeping an eye on inflation while they are trying to decide when to raise rates again.

NZD/USD fell 0.56% to 0.6779, off Friday’s two-month peak of 0.6822.

Investors kept focusing on the oil market, as prices went above $36 a barrel, a first since January 6.
The US dollar index, which measures the greenback’s strength against a basket of six other major currencies, was up 0.19% at 97.43.

AUSSIE REMAINS STEADY, GREENBACK GAINS

Chinese trade data still pressuring markets

Following the release of Australian consumer sentiment data, the aussie was slightly changed on Wednesday, as the kiwi slid down among worldwide concerns.

Markets were broadly affected by low Chinese trade data, which on Tuesday showed that china’s exports fell 24.4% instead of expectations of a 12.5% decrease, China being one of the world’s biggest importers tends to rattle markets when disappointing data comes through.

AUD/USD was trading at 0.7431.

According to The Westpac Banking Corporation, Australia’s consumer sentiment declined 2.2% in March, after a 4.2% rise last month.

Another report showed that home loans fell 3.9% in January, much higher than initial expectations of a 2.3% decline. A revised figure showed that December home loans had gained 2.7%, instead of the initially reported 2.6% gain.

NZD/USD fell 0.21% to trade at 0.7431, investors are looking ahead to the Reserve Bank of New Zealand’s (RBNZ) interest rate decision, expected on Thursday.

Later in the day the RBNZ will release its Official Cash Rate, and Monetary Policy Statement followed by a press conference and a speech by Governor Wheeler.

The US dollar index, which measures the greenback’s strength against a basket of six other major currencies, was up 0.21% at 97.36, off the last session’s two-week low of 96.89.

The US will release wholesale inventories month on month later today.

AUSSIE AND KIWI DROP FOLLOWING RBNZ RATE CUTS

China’s slowing economy continues to have a global effect

Aussie and kiwi fell against the US dollar on Thursday, after the Reserve Bank of New Zealand’s (RBNZ) sudden decision to lower interest rates and make further cuts.

NZD/USD moved down 0.21% to 0.6638.

Although analysts thought the central bank would not change rates, the RNBZ decided to lower its benchmark interest rate to 2.25% from 2.50% at its monthly policy, resulting the New Zealand dollar’s decline.

With reference to the bank’s decision, RNBZ governor Graeme Wheeler pointed out that China is a major risk to global growth and inflation, since a possible slowdown in the Chinese economy could have a worldwide effect.

Furthermore, the central bank signaled the possibility for further cuts to be made in the near future, depending on upcoming economic data in the country.

AUD/USD dropped 0.24% to trade at 0.7467, not far from last session’s eight month high of 0.7527.

For the time being, investors stayed cautious regarding the European Central Bank’s policy decision due later in the day, amongst expectations for further easing measures to be announced.

The US dollar index, which measures the greenback’s strength against a basket of six other major currencies, was up 0.25% at 97.43

ECB CUTS INTEREST RATES TO A RECORD LOW

Euro dips as markets react to ECB decisions – USD seen higher

The greenback gained against the euro as markets reeled in the aftermath of the European Central Bank’s (ECB) decision to cut interest rates, and comments by ECB president Mario Draghi.

The euro saw a sharp decline following ECB announcements, EUR/USD lost 0.16 percent to 1.1161 from the previous session’s high of 1.1217. EUR/GBP lost 0.14 percent to 0.7816.

Markets were broadly affected when the ECB announced its decision to cut interest rates across the Eurozone to a new record low of zero from its previously held level of 0.05 percent. The bank also cut the deposit facility rate deeper into negative territory to minus 0.4 percent and cut the marginal lending rate cut to 0.24 percent from 3.30 percent.

The ECB also increased its quantitative easing program from 20 billion dollars per month to 80 billion, a decision which will be implemented in April.

Draghi told reporters in a news conference “Rates will stay low, very low, for a long period of time and well past the horizon of our purchases. From today’s perspective and taking into account the support of our measures to growth and inflation, we don’t anticipate that it will be necessary to reduce rates further”.

The US dollar on the other hand was supported by a positive job report released by the Department of Labour which showed that the number of individuals filing for initial jobless benefits in the week ending 5th of March was lower by 18,000 to 295,000 from the previous week’s total of 277,000.

After indications that a further rate hike will not happen any time soon, recent data has set the market back on track with the Fed’s overall outlook and returned the possibility of a rate hike in the near future.

"Financial markets for a while were completely out in the weeds, running around looking at things that turned out not to be real risk," said Torsten Slok, chief international economist at Deutsche Bank.

Fed policymakers meet on March 15th and 16th. They are expected to hold interest rates steady and are seen likely nudging down their expectations to three hikes for 2016.

AUSSIE FALLS LOWER AGAINST US DOLLAR, KIWI REMAINS STEADY
The Aussie fell against the US dollar this Wednesday, as the kiwi remained steady while investors looked forward to the Federal Reserve’s policy decision later on Wednesday.

AUD/USD fell 0.15% to 0.7447.

Investors anticipated the outcome of the Fed’s policy meeting later in the day, as it was expected that there will be no change since there were signs of weakness in global economy. Furthermore, investors awaited the release of US housing sector and inflation reports for further signs on the growth of the economy.

NZD/USD was little changed at 0.6605.

The greenback slipped following the US Commerce Department’s report last week which showed a decline in retail sales and producer prices the previous month.

The US dollar index, which measures the greenback’s strength against a basket of six other major currencies, was up 0.20% at 96.85.

OIL PRICES LOWER FOLLOWING HIGHER RIG COUNT

Markets anticipating an OPEC meeting

On Monday, oil prices prolonged losses from the previous session in European trade, following the first US rig count rise since December, raising concerns about the supply glut.

Crude oil for April delivery lost 72 cents on the New York Mercantile Exchange (NYMEX) trading at 39.47 dollars a barrel by 09:50 GMT.

Oil has been struggling with supply exceeding demand, the decline in rig count in previous weeks helped the commodity gain some of its lost value, while the increase in rig count this week took back some of the gains.

Brent for May lost 40 cents on the ICE futures exchange in London, falling to 40.80 dollars a barrel.

Last week oil prices had jumped higher following five weeks of gains prompted by a decline in US shale production, Brent futures had added 2.01 percent last week after four weeks of gains.

The oil market is still expecting oil producers, both OPEC (organization of Petroleum Exporting Countries) and non-OPEC, to convene and reach a decision to control output. According to Qatari oil minister Mohammad Bin Saleh Al-Sada, a meeting is schedule in Doha on the 17th of April, for over 20 producers, who will account for 73 percent of global oil production.

Aussie and Kiwi Fall to 1-Week Lows against Greenback

NZ trade surplus increases in February

The Aussie and kiwi hit their one-week low against the dollar this Thursday, in spite of New Zealand trade figures, while US rate hike expectations for April kept supporting the greenback.

In the meantime, NZD/USD slid 0.36% to 0.6679, hitting its lowest point since March 16.

Earlier Wednesday, Statistics New Zealand stated that the trade surplus in February increased to NZ$339 million from NZ$13 million in January, whose figure was revised from a previous reading of NZ$8 million.

The trade surplus was thought to expand to NZ$50 million the previous month.

Furthermore, AUD/USD fell 0.64% to trade at 0.7486, the lowest level reached since March 16.

The greenback stayed supported following Philadelphias Fed Presidents speech on Tuesday, with reference to the US central bank raising interest rates next month if the US economy keeps improving.

Chicago Fed President stated that he expects two more rate hikes before the end of 2016, whether the economy stays on course or not.

A day later, Atlanta Fed Reserve President hinted that the Fed will probably increase interest rates in April.

The US dollar index, which measures the greenbacks strength against a basket of six other currencies, was up 0.26% at 96.32, the highest it reached since March 16.