The USD is the strongest. The NZD is the weakest in the end of week snapshot
Looking at the % changes of the major currencies vs each other, shows that the USD has eked out the JPY as the strongest currency of the week. The NZD is the weakest currency.
The combination is the traditional flight into safety of the USD and the JPY, and flight out of risky pairs.
The trade war fears are adding to those flows as $200B more tariffs on China goods (and retaliation from China) and threats of an additional $267B to come (more of a threat than an promise), hurts those countries who rely on China growth for part of their growth.
The NZDUSD fell 1.3% for the week. The AUDUSD fell 1.2%.
Looking at the NZDUSD hourly chart, the pair closed around 0.6610. The high for the week reached 0.6621 on Monday and 0.66157 again on Thursday, before moving to a new week low today at 0.6623. The low today took out Wednesday's low at 0.6629.
Overall it has been a down, up an down again week, but are trading near the lows for the week.
We currently trade at 0.6636. The 6 pip failed break is a bit of a disappointment. The price will have to get and stay below to keep the bears in charge.
The Wednesday low took out the August 15 low (low for the year) at 0.6544 That level is close risk for shorts looking for more downside momentum. Move back above that level and the sellers may look to ease up on the bearish gas pedal.
The AUDUSD is also trading at lowest levels since 2016 (Feb 2016 for it).
Looking at the weekly chart, it fell below a lower trend line at 0.7154, and also swing lows from 2016 in the 0.7144-59 area. That break is more bearish. Stay below the 0.7159 is now risk (we trade at 0.71058 currently).
