FX Strategy 02 Jul 19

AUD and JPY are the top G10 FX gainers today, up 0.23% and 0.21% vs the dollar while GBP and NZD are the top losers, down -0.18% and -0.13% vs the dollar. The Australian dollar has risen post-RBA decision to cut rates by 25 basis points to a record low of 1.00%; the central bank was more balanced about the future outlook and this helped investor sentiment towards the Aussie. Elsewhere, Sterling remained weak as next UK PM candidates have both promised rate cuts and increased spending, to add to this is weak economic outlook which may prompt the BoE to change its current hawkish stance. In the Asian equities space, the Nikkei 225 closed up +0.11% at 21,754.27, Hang Seng closed 1.17% at 28875.56 and Kospi ended -0.36% at 2122.02. The European equities were trading mixed with the FTSE 0.19% at 7512.05, DAX -0.21% at 12495.43, and CAC -0.13% at 5560.65. In the rates market, global yields were trading mixed; the US 10-year yield was trading at 2.0101% and the Bund 10-year yield trading at -0.359%. In the energy space, the Brent (front month) is trading down (-0.4%) for the day at $64.8.

 

Economic Calendar

 

 

10-Year Yields Daily Chart (6-month)

 

 

USD-Index Daily Chart (6-month)

 

 

Brent Front Month Daily Chart (6-month)

 

 

Trade Weighted Basket Hourly (two-week)

 

 

 

 

EURUSD Chart (Two-week)

 

 

Strategy: Resistance at 1.1341 for 1.1244
Short-term view: EUR/USD resistance at 1.1341 and MACD and RSI are still bearish, we look for a dip to 1.1244. Above 1.1341 to open 1.1372.

 

GBPUSD Chart (Two-week)

 

 

Strategy: Resistance at 1.2650 for 1.2572
Short-term view: GBP/USD has resistance at 1.2650, MACD and RSI are bearish and a top is completed. Hence, we see a dip to 1.2572, likely 1.2521. Above 1.2650 to open 1.2698.

 

USDJPY Chart (Two-week)

 

 

Strategy: Support at 108.01 for 108.73
Short-term view: USD/JPY support at 108.01 MACD and RSI are mixed. Hence, we see a bounce to 108.73. Below 108.01 to open 107.48.

 

AUDUSD Chart (Two-week)

 

 

Strategy: Support at 0.7018 for 0.6950
Short-term view: AUD/USD resistance at 0.7018, MACD and RSI are bearish. Hence, we see a dip to 0.6950, likely 0.6915. A move above 0.7018 to open 0.7065.

 



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