Kiwi leads gains ahead European markets open

Author: Justin Low | Category: News

The yen is on the back foot

WCRS 11-02
ForexLive
Looking by the extremes, nobody can blame you if you would've guessed this was a sign of a more risk-on market. However, that isn't really the case but the kiwi and aussie are shining rather brightly as we await European traders to join us on the new week.

NZD/USD is finding a way past the 200-day MA @ 0.6756 after hanging on to support from the 100-day MA @ 0.6725 and that is continuing to keep the pair underpinned as traders await the RBNZ meeting on Wednesday. With economic data disappointing as of late, there is some concern that the central bank may shift to a more dovish stance but the kiwi isn't letting up just yet.

At the same time, the aussie is also getting a bit of a boost as iron ore prices in the Chinese exchange pushed higher earlier today. Some decent strength in the yuan since the PBOC fixing is also helping both the kiwi and aussie a little on the day as well.

Meanwhile, the yen is trailing the rest of the major currencies bloc as USD/JPY rises to test the 110.00 handle once again with trade talks between US and China coming back into focus this week. That will cast a shadow over risk assets this week as traders and investors will be awaiting for further developments before settling on a theme in the days to come.

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