Foreign Exchange

The US have hiked tariffs as promised, although trade talks are set to resume in the US later today. Whilst this provides a glimmer of hope for a trade deal to be reached, the reality is we need to brace ourselves for a no-deal outcome. Either way, we expect trade talks to have a binary […]

USD/CNH hit fresh highs ahead of high-stakes trade talks, a currency move which will surely irk the president and have a large impact on markets if Yuan weakness is sustained. If momentum is persists it could be headed for 0.6920 and 0.6980 if Beijing allow. Over the near-term we’ve seen USD/JPY hold above its cycle […]

RBNZ cut rates for the first time since November 2016, taking it to a new record low of 1.5% today. Yet whilst NZD is broadly lower, RBNZ’s hint 1.5% is it for now could limit downside over the near-term. Summary of the statement: (OCR) has been reduced to 1.5 percent Lower OCR necessary to support […]

Trade talks in Washington are set to resume today and it could be a binary outcome for global sentiment. As Matt Weller pointed out, the US-China trading relationship (or lack of) will have dramatic impact on global markets and with a general lack of news-flow beyond the RBNZ meeting shortly, this is the only game […]

After much anticipation, the RBA opted to held rates at 1.5%, making it the 30-consecutive meeting without a change of policy since lowering rates to record lows. That doesn’t mean they’re out of the woods yet though… Looking at the differences between the April and May statement, the RBA continue to remain optimistic over employment […]

The RBA and RBNZ meetings are on our doorstep (RBA up in less than 2 hours) and with either having the potential to cut rates, we could be in for a lively 24hrs for AUD and NZD. The two main factors which have traders preparing for a rate cut tomorrow is RBNZ shifting to a […]

Amazon shares (NASDAQ:AMZN) have gapped up as a result on an ongoing strong buying pressure in the market. This is a trend that is supposed to continue for most of this year. Price reached a significant low in December 2018, and then rose up, only to trade sideways later. The sideways movement ended in March […]

A strong rejection of support places a clear line in the sand for bulls, who appear set to target the December 2016 highs. As Matt Weller noted in our FOMC recap the Fed left policy mostly unchanged (bar a 0.05% reduction of the IOER rate) yet remain concerned over price pressures. However, markets were positioned […]

NZD/USD is one of the several majors we’re tracking to try and catch the end of its retracement against USD strength. With NZ employment figures, FOMC and NFP nearby, we expect volatility to be reinstated. We’re leaning towards an RBNZ cut in May so NZ employment figures overnight could be key. Furthermore, with a slightly […]

Last month’s manufacturing PMI rebound is under question after today’s weak print, weighing on AUD whilst equity trader’s question if PBOC will provide yet more stimulus. After expanding for the first time in 5-months, sentiment was lifted and calls for China’s downturn to have bottomed rose. Yet today’s data shows manufacturing barely expanded at 50.1 […]