Early morning NZ showed PPI input/output is lower than expected giving more reasons for the bears to take advantage of the weak NZD. This is in tandem with my yesterday outlook.
Now that we see the NZDUSD break down to 0.8420 (lowest) before trading back to 0.8440. Here’s an update of NZDUSD: FX Analysis – 19AUG14 – NZD
Yesterday, as I was saying that the NZDUSD doesn’t seem bullish enough to get to 38.2% or 50% retracement and looked to SHORT if the NZDUSD were to reach 0.8520. However, the NZDUSD did not passed 0.8505 and fell to 0.8420.
At this point, I do feel that the bearish movement on the NZDUSD may not hit another lower than 0.8400. I would recommend to play by ear and note of the lack of strength in the bear.
In fact, @ 0.8400 – 0.8410, I would prefer a LONG position.
RBA’s minutes doesn’t show much of what to expect from the RBA. Currently Members are comfortable with current monetary policy and inflation is consistent with target range. Tomorrow RBA’s Governor Steven to speak:
Here’s an update of AUDUSD analysis: FX Analysis – 19AUG14 – AUD
AUDUSD edged up to key resistance @ 0.9330 after RBA’s minutes shows that current monetary policy will remain accommodative and inflation remained consistnece with 2-3 per cent target. The main concern here would be the increasing AUDUSD while on the commodities price seems to be heading downwards.
Tomorrow we will be seeing RBA Governor Steven speech to see if there’s any attempt to jawbone down the AUD. On the other hand, tonight we will be keeping an eye on US’s CPI and building permits which would give an idea of what Yellen will be talking about at Jackson Hole.
We are current in position to SHORT AUDUSD.
We look to tonight US CPI & building permits data release. As I see EURUSD and GBPUSD, both look ready to commit for a retracement/correction. Recommended to LONG on these position.
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