Forex news for Asia trading Monday June 17, 2019.
- It's early but the NZD is the strongest of the majors. The JPY is the weakest.
- Asian stocks are mostly higher. Some risk on flows.
- The PBOC sets USD/CNY midpoint today at 6.8940
- Gold down on the day. 100 and 200 hour MAs eyed
- UK Rightmove house price index for May 0.3% vs 0.9% last
- The week ahead 16th of June by KnightsBridge Trading Academy
- NZ Performance Services Index 53.6 vs 52.0 (revised)
- Boris Johnson skips the debate with the big lead
- The Fed meeting (and BOE and BOJ meetings) highlights the week
- China state media: Countermeasures Beijing is taking against US tariffs could routine
- Bitcoin is higher over the weekend
- ECB's de Guindos says if further de-anchoring of inflation expectations the Bank will react
A snapshot of other markets is showing:
- Spot gold is up $0.37 or 0.03% at $1342.22. The price fell to the a low of $1336.16. At the lows, the contract got close to the rising 100 hour MA at $1336.36. Holding the level increases the levels importance for the rest of the day. The 200 hour MA is also a key level below at $1334.42.
- Bitcoin is up $200 and over $9000 at $9133.52 on Coinbase. The price was helped by anticipation of Facebooks venture into crypto (details on Tuesday).
Earlier gains in Asian shares have been pared back (with some going negative now).
- Japan's Nikkei is up 0.10% or 20 points at 21137. The high reached 21185. The low extended to 21044.62
- Hong Kongs Hang Seng is up 0.66% at 27298. It reached a high of 27503.10 and a low of 27230.97
- The Shanghai Composite index is trading down -0.05% now at 2880.52. The high reached 2902.48. The low extended to 2877.394
There was some 2nd tier data out in the session.
- NZ Performance services index moved to 53.6 from a revised 52.0 reading in April (was 51.8). The rise was off the lowet reading since 2012. Employment rose. New orders rose. Stock/inventory also rose.
- The UK Rightmove house price index rose 0.3% vs 0.9%. YoY rose 0.0% vs 0.1% last month.
In the forex, the USD sold off a little against the major currencies with the NZDUSD and the AUDUSD moving the most (albeit somewhat modest). Both those currency pairs moved sharply lower on Friday after the better US retail sales data. The moves higher today only corrected about the 30% to 38.2% of the moves lower.
The EURUSD also rebounded a touch off its low levels from Friday moving to a high of 1.12236. That level was right at the 50% of the last leg down on Friday (see post here). If the price cannot extend above that minimum hurdle, the sellers are still looking to keep control. The 200 bar MA on the 4 hour is at 1.12118. A move below it will be increase the pairs bearish bias.
The USDJPY moved away from its 100 and 200 hour MAs at 108.389 and 108.45. The high price extended to 108.70, before moving back toward midrange at 108.56. The USDJPY only traded in at 65 pip trading range all of last week. Today the range was 24 pips (that shared the largest trading range for the major pairs with the GBPUSD). Relatively speaking, 24 pips is a better start. The pair was initially helped by stronger stocks. The give up of some of the gains, led to the modest move back down.
