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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% 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.

Forex News Timeline

Friday, October 23, 2020

With US President Donald Trump lagging former Vice President and Democratic candidate Joe Biden in national polls, the final face-off between the two

With US President Donald Trump lagging former Vice President and Democratic candidate Joe Biden in national polls, the final face-off between the two emerged to be much more civilized and informative than the first chaotic clash.   There were minimal interruptions from both sides, especially from the incumbent Trump after he reportedly interrupted 73 times in the first debate. This could probably turn out in his favor, as the election contest gets much tighter in some battleground states where the votes will likely be decided. Joseph Trevisani’s, Senior Analyst at FXStreet, wrapped up the debate, saying: A modulated informative and challenging debate. Both candidates kept interruptions to a minimum, allowing the other to speak and respond. Kristen Welker was by far the best moderator of the debates and the competing town halls that replaced the second debate. The quality of the exchanges and the informative value was high. Each candidate performed well, though in comparison to the first debate Trump showed much greater range. Mr Trump presented a different persona, and in that he probably helped himself more than Mr. Biden who was relatively unchanged from his earlier appearances. Market implications Although a better show put up this time by both sides, the debate wasn’t market-moving. The US dollar pared gains across its major peers while the S&P 500 futures held modestly flat around 3,450 levels. Most majors remained stuck in tight trading ranges. Gold jumped back on the bids above $1900, near-daily highs of $1907, as we write.

China's President Xi was out on the wires Friday stating that the people's liberation army won't allow anybody, any force to separate the nation's ter

China's President Xi was out on the wires Friday stating that the people's liberation army won't allow anybody, any force to separate the nation's territory. Xi's comments come amid heightened tensions with India and Taiwan.  Key quotes/points Chinese people cannot be messed with.  Xi calls for faster moves in modernizing national defense, armed forces.  Any act of unilateralism, monopolism won't work. 

Gold is currently trading just above $1,902 – the lower end of the falling channel represented by trendlines connecting Sept. 28 and Oct. 14 lows and

Gold is defending the lower end of a multi-week rising channel. A breakdown looks likely with US yields on the rise. Gold is currently trading just above $1,902 – the lower end of the falling channel represented by trendlines connecting Sept. 28 and Oct. 14 lows and Oct. 2 and Oct. 12 highs.  A break below $1,902 would confirm a rising channel breakdown. That would imply a resumption of the sell-off from the Sept.16 high of $1,973 and open the doors for a re-test of September lows near $1,850.  That possibility cannot be ruled out as treasury yields are rising, making the zero-yielding yellow metal look unattractive.  On the higher side, the Oct. 21 high of $1,931 is the level to beat for the bulls. That would expose the upper end of the rising channel, currently at $1,958.  Daily chartTrend: Neutral Technical levels  

Chinese yuan is more stable than expected and has maintained relatively high flexibility, the country’s forex regulator, the State Administration of F

Chinese yuan is more stable than expected and has maintained relatively high flexibility, the country’s forex regulator, the State Administration of Foreign Exchange (SAFE), said in a statement released on Friday. Additional quotes “Chinese yuan will still fluctuate around a reasonable balanced level.” “China's forex market to develop steadily under the support of the domestic economy, markets.” “Will step up monitoring of inbound, outbound cross-border capital flows.”

The futures tied to the S&P 500, Wall Street's equity index, continue to trade in the red even though President Trump said a coronavirus vaccine would

The futures tied to the S&P 500, Wall Street's equity index, continue to trade in the red even though President Trump said a coronavirus vaccine would be announced in weeks during the second Presidential debate.  The futures are trading at 3,443 at press time, representing a 0.15% decline on the day.  While Trump insisted that Covid-19 would soon go away through medical breakthroughs, Democrat Presidential candidate Joe Biden criticized Trump's handling of the coronavirus crisis and said the man responsible for 220,000 American deaths should not remain as the US President.  As of Friday, Biden is leading in polls. The US bond market is steepening on expectations that Biden would unleash massive stimulus, and the Congress would approve additional fiscal stimulus before the Nov. 3 elections. 
 

On the topic of US fiscal stimulus, which is of interest for the markets lately, President Trump said that he has already approved three proposals. Ho

On the topic of US fiscal stimulus, which is of interest for the markets lately, President Trump said that he has already approved three proposals. House Speaker and Democrat Nancy Pelosi doesn’t want to pass the aid bill, as she wants some victory on the November 3 election day. Trump and Biden are playing the blame-game on not reaching a dual stimulus deal so far. On the issue of raising minimum wages to support small businesses, Biden said ‘we should bail them out now.’ Trump said that raising minimum wages should be a state option. It’s not true that if you raise minimum wages, businesses go out of business, Biden argued.   developing story ...

A section of the Treasury yield curve continues to steepen on strengthening hopes for additional US fiscal stimulus. The spread between the US 10- and

A section of the Treasury yield curve continues to steepen on strengthening hopes for additional US fiscal stimulus.  The spread between the US 10- and two-year yields has risen to 71 basis points, the highest level since June 5. The spread has widened by 12 basis points this week alone and is up more than 30 basis points from August lows.  According to Reuters, the US House Speaker Nancy Pelosi said on Thursday that negotiators were making progress in fiscal stimulus talks, and legislation could be hammered out "pretty soon." With Democratic presidential candidate Joe Biden leading polls, the bond market looks to be pricing a surge in spending and deficit. According to Moody's analytics, Biden's spending plan would boost the total deficit to $2.6 trillion on a dynamic basis by 2030. Besides, some analysts believe Biden victory would force the Federal Reserve to hike interest rates sooner-than-expected. 

Biden gets the first question and was asked what he would do to stop other countries meddling in US elections. This follows the news from the prior da

Biden gets the first question and was asked what he would do to stop other countries meddling in US elections. This follows the news from the prior day that US national security officials claimed that Iran was responsible for sending threatening emails to Democratic voters ahead of next month's presidential election. Biden said the following:      I made it clear and I asked everyone else to take the pledge. Any country, no matter who it is, her interviews with American elections will pay a price. They will pay a price. It has been overwhelmingly clear the selection, no-one ever get into the last ones, the selection that Russia has been involved, China has been involved to some degree and now we learn that Iran has been involved. They will pay a price if I am elected. They are interfering with American sovereignty.       Biden then brought up Rudy Giuliani.        His (Trump's) buddy Rudy Giuliani, he has been used as a Russian pawn. He has been fed information that is not true and then what happens — pawn, and then you find out that everything going on here about Russia is anting to make sure that I do not get elected the next president of United States because they know I know them and they know me, Biden says. The President says that "I never got any money from Russia".  I have got the NATO countries to put up an extra Iran billion - $420 billion a year to go against Russia," Trump said. Trump pivots to the Hunter Biden theme:     "All of the emails, the emails, horrible emails of the kind of money that you were raking in, you and your family. And you are Vice President when some of this was happening and it should have never happened. I think you owe an explanation to the American people. Why is it? Somebody just at a news conference a little while ago who was essentially supposed to work with you and your family but what he said was damning. And regardless of me, I think you have to clean it up and talk to the American people. Biden responded: "I have not taken a penny from any foreign source ever in my life. We learned that this president paid 50 times the tax in China as a secret bank account with China, does business in China, and in fact is talking about me taking money? I've not taken a single penny in any country whatsoever, ever. Number one. Number two, this is a president, I have released all of my tax returns. 22 years. Look at them. 22 years of my tax returns. You have not released a single solitary year of your tax returns. What are you hiding? Why are you unwilling? The foreign countries are paying you a lot. Russia is paying you a lot. China is paying you a lot. And your hotels and all your businesses all around the country, all around the world. And China is building a new road to a golf course you have overseas. So what is going on here? Why don't you release your tax returns and stop talking about corruption?" .. End Meanwhile, the US dollar is stable on the 93 level.

According to the latest Reuters poll of economists, the coronavirus resurgence is seen derailing the Eurozone’s economic recovery, with weak growth an

According to the latest Reuters poll of economists, the coronavirus resurgence is seen derailing the Eurozone’s economic recovery, with weak growth and inflation outlooks. Key findings “The Oct. 15-22 Reuters poll found nearly 90% of economists or 48 of 55, said there was a high or very high risk the resurgence in cases now underway across Europe would halt that nascent euro zone recovery.” “After contracting 11.8% in Q2, the economy was expected to have grown 8.9% in Q3, better than 8.1% predicted last month, and by far the strongest performance on record if realized. But growth in the current quarter will slip to 2.1%, lower than the 2.5% previously expected and substantially weaker than the 2.8% forecast in May when lockdowns were eased after the first wave of infections.” “Over 60% of respondents, or 31 of 53, said the bloc’s jobless rate would not peak for at least six months. Only two said it already had. But the range of forecasts was wide, from 8.1% to 13.4%. Only a handful of economists predicted inflation would touch the European Central Bank’s target of just below 2% before end-2022.” “The ECB is forecast to increase the size of its pandemic-related bond purchases by an additional 400 billion euros on top of the 1.35 trillion euros already announced.”

GBP/USD has breached the support at 1.3083 (Oct. 12 high), extending Thursday's 0.48% decline. The pair failed to take out 1.3174 – the 61.8% Fibonacc

GBP/USD reverses lower from a Fibonacci retracement hurdle. Daily chart indicators continue to favor the bullish move. GBP/USD has breached the support at 1.3083 (Oct. 12 high), extending Thursday's 0.48% decline.  The pair failed to take out 1.3174 – the 61.8% Fibonacci retracement of the drop from Sept. 1 high to Sept. 23 low – earlier this week and has been on the offer ever since.  However, the 14-day relative strength index is still holding above 50 (in bullish territory). Similarly, the positive MACD histogram shows the path of least resistance is to the higher side.  As such, the pair could reverse losses during the day ahead. On the way higher, the pair may encounter resistance at 1.3174, followed by 1.3267 (Aug. 19 high).  On the downside, support is seen at 1.3011 (50-day simple moving average). At press time, the pair is trading at 1.3068.  Daily chartTrend: Neutral-to-bullish Technical levels  

Donald Trump and Joe Biden are going head-to-head in the final presidential debate before the election on November 3. The mics are muted, for now, so

Donald Trump and Joe Biden are going head-to-head in the final presidential debate before the election on November 3. The mics are muted, for now, so each are getting a fair crack at the whip for two minutes during the initial response to six of the debate topics. It has started off with questions on COVID-19. The President was asked about a third wave hitting the US. The moderator asked how he's going to lead the nation through this next stage. Trump says there have been spikes and surges before, but they're gone now. The Wall Street Journal, just today, wrote in an article that the US reported more than 60,000 new coronavirus cases for the second day in a row, as the spread continues to accelerate in most states. However, the WSJ explained that ''the widespread nature of the current surge differentiates it from the spring and summer waves. On Wednesday, 24 states recorded more than 1,000 new cases, a contrast to the summer when California, Texas and Florida accounted for the majority of daily cases. On a handful of days in July, Texas and Florida together reported more than 20,000 cases each day.'' "There was a very big spike in Arizona and it is now gone. And there were some spikes and surges in other places, they will soon be gone. We have a vaccine that is coming, it is ready, it is going to be announced within weeks, and it is going to be delivered," Trump said. "I have been congratulated by the heads of many countries on what we have enabled to do, if you take a look at what we have done in terms of goggles and masks and gowns and everything else, and in particular, ventilators. We are now making ventilators all over the world. Thousands and thousands a month, distributing them all over the world. It will go away, and as I say, we are rounding the turn, we're rounding the corner, it is going away," Trump said. Meanwhile, "220,000 Americans dead. If you hear nothing else I say tonight, hear this," Biden said, blaming Trump for the deaths and stating that no he should not be president for this alone.  "I will take care of this, I will end this, I will make sure that we have a plan," Biden said. Meanwhile, the US dollar has established after a pre-debate spike. Dollar Index Price Analysis: Rises above 93.00, but bearish channel still intact

The People's Bank of China (PBOC) has set the yuan reference rate at 6.6703 versus Thursday's fix at 6.6556.

The People's Bank of China (PBOC) has set the yuan reference rate at 6.6703 versus Thursday's fix at 6.6556.

EUR/USD has dropped in Tokyo as the US dollar climbs across the board ahead of the Presidential Debate. The DXY is up 0.16% and on the 93 level after

EUR/USD is dropping below crucial support as the dollar rallies ahead of the Presidential Debate.It is expected to be a heated debate and could offer markets participants volatility. EUR/USD has dropped in Tokyo as the US dollar climbs across the board ahead of the Presidential Debate.
The DXY is up 0.16% and on the 93 level after printing a high of 93.12 from a 92.92 low. Subsequently, the euro has traded between a low of 1.1786 and 1.1823. The show is about to start and it is expected to be a heated debate. The Commission on Presidential Debates announced on Monday that they will mute each candidates’ microphone for two minutes during the initial response to six of the debate topics. Trump is renowned for interrupting and taking control for which the rules now are that each candidate speaks uninterrupted, but 15 minutes of open discussion will follow without any muting, according to the commission. However, that is not going to stop US President Donald Trump for taking control for the rest of the time.    Can Trump make a comeback? Join our live coverage! FXStreet's Joseph Trevisani and Yohay Elam will analyze the market reaction to the last presidential debate at 00:45 GMT.  Stay updated here!EUR/USD levels
 

The dollar index, which tracks the greenback's value against majors, is gaining altitude on Friday. At press time, the DXY is hovering near 93.10, rep

The dollar index extends Thursday's gain with a move above 93.00The greenback remains stuck in a four-week falling channel.  The dollar index, which tracks the greenback's value against majors, is gaining altitude on Friday. At press time, the DXY is hovering near 93.10, representing a 0.18% gain on the day and validating Thursday's bullish inside-day candle.  Even so, it's too early to call a bullish reversal. That's because the index is still trapped in a bearish channel represented by trendlines connecting Sept.25 and Oct. 16 highs and Oct. 9 and Oct. 21 lows.  A close above 93.60 is needed to confirm a falling channel breakout. On the downside, violation of the Asian session low of 92.93 would shift risk in favor of a re-test of Thursday's low of 92.61.  Daily chartTrend: Neutral Technical levels
 

USD/JPY tested former support-turned-hurdle at 104.94 (Oct. 2 low) a few minutes ago as Japan's consumer prices slipped for the second straight month

USD/JPY faces rejection at key resistance at 104.94. Japan's core CPI dropped for the second consecutive month in September. USD/JPY tested former support-turned-hurdle at 104.94 (Oct. 2 low) a few minutes ago as Japan's consumer prices slipped for the second straight month in September.  Core consumer prices, which exclude the effect of volatile fresh food and energy component, fell 0.3% year-on-year in September following August's 0.4% decline. The data showed the Japanese economy is facing coronavirus-induced deflationary pressure.  As such, the Japanese yen came under pressure., pushing USD/JPY higher to 104.94. The resistance, however, has held intact, forcing the currency pair back to 104.80.  The US 10-year yield clocked a four-month high of 0.87% in early Asia. The hardening of the yield is again failing to put a strong bid under the greenback. Analysts foresee a continued rise in yields on the back of the US fiscal largesse.  The focus now shifts to the second and final US Presidential debate. "Democrat Presidential candidate Joe Biden is ahead in the polls and does not need an outright victory, but only needs to hold his own in the confrontation," FXStreet's Joseph Trevisani said. Trevisani added that "unless there is a breakdown by either candidate or a first-order unusual event, markets are unlikely to take much notice, however, heated the rhetoric." Technical levels  

It is expected to be a heated debate, so much so that the Commission on Presidential Debates announced on Monday that they will mute each candidates’

President Donald Trump and Democratic presidential nominee Joe Biden are set to face off.The debate is scheduled to start at 9 p.m. Eastern Time.It is expected to be a heated debate, so much so that the Commission on Presidential Debates announced on Monday that they will mute each candidates’ microphone for two minutes during the initial response to six of the debate topics. Trump is renowned for interrupting and taking control for which the rules now are that each candidate speaks uninterrupted, but 15 minutes of open discussion will follow without any muting, according to the commission. Trump isn't happy about the changes and he told reporters that while he objects to changes for Thursday’s debate, he is committed to debating his opponent regardless. The debate is scheduled to start at 9 p.m. Eastern Time.  Watch, Live at 9:00 p.m. ET, GMT 01:00, Oct. 22 Who's leading in the battleground states? At the moment, polls in the battleground states look good for Joe Biden, which is why this debate is so important to Trump's campaign. Polls point to big leads in Michigan, Pennsylvania and Wisconsin - three industrial states for Biden. Back in 2016, Trump won by margins of less than 1% to clinch his victory. However, the battleground states where Mr Trump won big in 2016 is where he will be most concerned for. His winning margin in Iowa, Ohio and Texas was between 8-10% back then but it's looking much closer in all three at the moment and political analysts rate Trump's chances of re-election as low. FiveThirtyEight, a political analysis website, says Mr Biden is "favoured" to win the election, while The Economist says he is "very likely" to beat Mr Trump. Market implications A Biden landslide, or Blue wave victory which such a landslide has been referred to, would likely see larger fiscal stimulus packages and thus pressure the US dollar lower. However, there are pros and cons for the stock market, particularly for financials and tech as legislation is expected to be tougher on those sectors under a Democrat government.   On the other hand, a more moderate stance on China and larger fiscal stimulus could be a plus for Wall Street and companies with international exposure.  Can Trump make a comeback? Join our live coverage! FXStreet's Joseph Trevisani and Yohay Elam will analyze the market reaction to the last presidential debate at 00:45 GMT.  Stay updated here!

Japan Jibun Bank Manufacturing PMI registered at 48 above expectations (47.3) in October

Gold prices have been in a chop, but reluctant to break higher beyond the mid-October highs, last printing a lower high on a daily basis and now break

Gold prices are back under pressure and below a critical trendline on the daily chart. The swing trading opportunities are caught up in the wash of volatility.A day trading strategy could offer an opportunity if price obeys market structure.Gold prices have been in a chop, but reluctant to break higher beyond the mid-October highs, last printing a lower high on a daily basis and now breaking the below the daily trendline: Meanwhile, the bears are looking into the lower time frames for opportunities to the downside. 1-hour chart Here, we illustrate how the price has reached a 50% mean reversion of the bearing impulse on the 1-hour chart. This does not mean that the price has completed its correction, however, it is a significant development and compelling nonetheless. At this juncture, bears can start to monitor the price action for a possible continuation to the downside.  15-min chart From a 15-minute perspective, the price remains in the bullish territory until the MACD crosses below zero, (or another momentum indicator of choice), and the price crosses below the 21-moving average.  At that point, bears can monitor for a sell limit order, expecting a pullback to test what was prior support for a discount and position in a presumed continuation to the downside. 

Japan National CPI ex-Fresh Food (YoY) came in at -0.3%, above expectations (-0.4%) in September

Japan National CPI ex Food, Energy (YoY) rose from previous -0.1% to 0% in September

Japan National Consumer Price Index (YoY): 0% (September) vs previous 0.2%

United Kingdom GfK Consumer Confidence below expectations (-28) in October: Actual (-31)

AUD/USD is currently trading at 0.7131 between a range of 0.7112 and 0.7139 and up some 0.2% on the day so far. Early Asia has been kind to Aussie bul

AUD is up on the day so far as early data gives the bulls a head start.PMI Composite index pops to 53.6 from 51.1 last month on strong Services number.AUD/USD is currently trading at 0.7131 between a range of 0.7112 and 0.7139 and up some 0.2% on the day so far. Early Asia has been kind to Aussie bulls with the price of the currency extending its late New York gains with a robust Construction PMI report, solidly above the 50.0 expansion level, arriving at 54.2. Services PMI arrived at 53.8 vs. 50.8 last month taking the Composite index to 53.6 from 51.1 last month. However, markers are expecting a lot more easing to come from the reserve Bank of Australia.  Analysts at ANZ Bank noted, however, that, overall, activity is up marginally around Australia. ''Though as Victoria has eased some restrictions and more are likely to end in early November, we expect the next month or so will see quite a lift. We have already seen this in regional Victoria with lifts in activity there flowing through to the data.'' Meanwhile, monetary policy remained centre stage this week and the minutes of the October RBA Board meeting confirmed support amongst members for additional easing at the November meeting. Last week’s speech by Governor Lowe also communicated the scope for easing the RBA has and the intent behind it. The PMIs were refreshing, but other data that became available this week highlighted the uncertainty over the outlook, particularly with respect to consumer demand, as analysts at Westpac explained. ''Retail sales fell 1.5% in September according to the ABS’ preliminary estimate. This outcome was weaker than the market anticipated, and also softer than our Card Tracker implied.''  ''Significantly, the ABS reported that all states saw a decline in sales in September. The final report for the month will provide greater detail on the value of sales as well as volume estimates.'' Overall, the analysts anticipate real household consumption will claw back about a third of Q2’s decline in Q3.   Aussie CPI on the horizon Looking ahead, Quarter 3 CPI for Australia in slated for next week which will be important.  ''We expect a 1.1% rebound in headline inflation but a flat outcome for the trimmed mean core measure. These forecasts, if realised, would see the headline and trimmed mean annual rates at 0.3%year and 0.8%year respectively, highlighting the degree of slack in our economy and the need for additional support from the RBA as above,'' the analysts at Westpac explained.    US Election Debate For the day ahead, the focus is not on the final US Election Debate.  The president is trailing in the polls and his debate with former VP Biden is a chance to shake up the race and rock markets. Our experts, Joseph Trevisani and Yohay Elam, will analyze the market reaction to the last presidential debate at 00:45 GMT. Stay updated here!AUD/USD levels  

New Zealand's Consumer Price Index was released in recent trade which has changed the bird's flight trajectory in early Asia. At the time of writing,

NZD/USD bulls have been stopped in their tracks by the miss in the CPI data.The US dollar found a lease of life on Wall Street, bulls encouraged by data.New Zealand's Consumer Price Index was released in recent trade which has changed the bird's flight trajectory in early Asia. At the time of writing, NZD/USD is trading at 0.6667 between a low of 0.6660 and from a high of 0.6677.
Overnight, the bird was pushing up against 0.6690 despite some ground made in the US dollar. But in Asia, the CPI data missed expectations and has put a roadblock up for the bulls.  NZ CPI New Zealand CPI (QoQ) Q3: 0.7% (exp 0.9%; prev -0.5%) CPI (YoY) Q3: 1.4% (exp 1.7%; prev 1.5%).
Markets will be in anticipation of the next move from the Reserve bank of New Zealand. ''The RBNZ has indicated that a Funding for Lending Programme (FLP) is the next cab off the rank in terms of monetary stimulus, essentially providing cheap funding to the banks with the explicit focus of targeting lower retail interest rates,'' analysts at ANZ bank explained.  ''We expect an FLP will be announced at the November MPS meeting and deployed soon after. The FLP will be complementary to the existing LSAP programme, while negative interest rates are expected to be added next year.'' US data was encouraging  Meanwhile, the US headlines on US fiscal negotiations were mixed overnight but jobless claims and housing reports were encouraging. Weekly jobless claims for the US eased this week with both initial claims and continuing claims lower than anticipated.  The data showed initial claims for state unemployment benefits in the United States dropped 55,000 to a seasonally adjusted 787,000 last week, although the overall number was still relatively high. A Reuters survey had forecast 860,000 claims in the latest week. ''This follows a lift in the number of people claiming an unemployment benefit last week, but these data tend to be volatile, and numbers are still historically high, so it is too early to say the job situation is improving. ' Markets will be tuned in to tonights final US Presidential debate in anticipation of some showmanship from the US President Donald Trump in the last effort to win over the US population.  His contestant, Joe Biden, is leading in the polls which are encouraging short positions the greenback as expectations of larger stimulus will come from a Democrat landslide victory. NZD/USD levels The bird, while holding above bullish structure, is destined for higher highs.  

Australia Commonwealth Bank Composite PMI climbed from previous 51.1 to 53.6 in October

Australia Commonwealth Bank Services PMI above expectations (50.3) in October: Actual (53.8)

Australia Commonwealth Bank Manufacturing PMI came in at 54.2 below forecasts (55.5) in October

White House Chief of Staff Meadows says the coronavirus relief negotiations have entered new phase with committee chairs talking, looking at technical

White House Chief of Staff Meadows says the coronavirus relief negotiations have entered new phase with committee chairs talking, looking at technical language, in a CNN interview. He says that Trump is willing to go bigger on coronavirus deal, including direct payments to families. Meadows says the coronavirus deal is currently at $1.9 trillion.  More to come...

The New Zealand Consumer Price Index (CPI) has been released for the third quarter and markets were hoping for some fresh direction for the NZD from i

The New Zealand Consumer Price Index (CPI) has been released for the third quarter and markets were hoping for some fresh direction for the NZD from it. Kiwi is offered on the miss of expectations.  The data has arrived as follows: NZ CPI NZ Q3 CONSUMER PRICE INDEX NON-TRADABLES +0.6 PCT VS PVS QTR 22-Oct-2020 15:45:11 - NEW ZEALAND Q3 CONSUMER PRICE INDEX +0.7 PCT VS PVS QTR (REUTERS POLL +0.9 PCT) 22-Oct-2020 15:45:11 - NZ Q3 CONSUMER PRICE INDEX NON-TRADABLES +2.6 PCT VS YR AGO 22-Oct-2020 15:45:11 - NZ Q3 CONSUMER PRICE INDEX +1.4 PCT VS YEAR AGO (REUTERS POLL +1.7 PCT) More to come... NZD/USD update The chart was bullish while above structure ahead of the data as follows:  Kiwi was pushing up against resistance into the data by the 0.6675/90 level. ''Technically, a sustained break above that level puts a move to the September high of 0.6798 into play, and then it’s pretty much blue sky above that,'' analysts at ANZ Bank explained. ''The NZD has done well on crosses, with the USD DXY firming a touch.''  More to come... About CPI Consumer Price Index released by the Statistics New Zealand is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchasing power of NZD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A high reading is seen as positive (or bullish) for the NZD, while a low reading is seen as negative

New Zealand Consumer Price Index (QoQ) below expectations (0.9%) in 3Q: Actual (0.7%)

New Zealand Consumer Price Index (YoY) came in at 1.4% below forecasts (1.7%) in 3Q

The USD/CHF has bounced up from 0.9030 lows against the Swiss Franc, favoured by stronger US dollar demand to reach 0.9080 before consolidating around

US dollar recovery from 0.9030 stalls at 0.9070 area.The dollar trims losses favoured by higher safe-haven demandGreenback's recovery loses steam as risk aversion eases.The USD/CHF has bounced up from 0.9030 lows against the Swiss Franc, favoured by stronger US dollar demand to reach 0.9080 before consolidating around 0.9070 on the late US trading session.US dollar picks up amid a negative market sentimentGreenback’s reversal from 0.9165 highs earlier this week was contained right above the 0.9000 psychological level on Wednesday and the pair managed to put an end to a three-day losing streak buoyed by safe-haven demand as risk sentiment soured. Investors’ optimism about a fiscal stimulus deal before the US Presidential Elections were crushed by Trump’s comments on Thursday blaming the Democrats for not willing to craft an acceptable agreement. This hammered appetite for risk and boosted the US dollar comeback with the Dollar Index bouncing back from seven-week highs. USD recovery lost steam during the late North American trading session, with equity markets popping into positive territory and risk aversion easing somewhat after US House of Representatives’ Speaker, Nancy Pelosi reported some progress on the negotiations and suggested that an agreement might be reached “pretty soon”. On the macroeconomic domain, the US jobless data contributed to easing risk aversion. The Weekly Jobless Claims data posted a larger than expected decline, with 787k last week, well below the 860K market consensus, while the previous week's reading was revised down to 842K from the 898K claims previously reported.    
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