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Forex Daily Recap – 109.02 Resistance Confined Ninja’s Upside as BoJ Plans Further Ease

By:
Nikhil Khandelwal
Published: Jul 30, 2019, 18:15 UTC

After opening up near 98 level on Tuesday, the US Dollar Index attempted to make a positive move in the early hours. The Switzerland July KOF Leading Indicator came out 97.1 points, 4.41% higher than the street estimates.

Japanese yen currency and dollar bank note

USD/JPY

The Ninja bulls remained under control today, staying within the robust 109.019 level. If at all the USD/JPY had broken the aforementioned resistance handle that would have enabled fresh challenge on some overhead SMAs. Today, Bank of Japan (BoJ) Governor Kuroda prompted further ease in the Central Bank’s monetary policy. Kuroda mentioned that the overall global economy has slowed down on account of rising US-Sino trade uncertainties. The Governor added that the BoJ would wait for the Fed’s rate decision before initiating any step.

USDJPY 1 Day 30 July 2019
USDJPY 1 Day 30 July 2019

“The BoJ probably wanted to save its ammunition because the yen wasn’t rising much. If Fed moves trigger yen rises, the BoJ could either strengthen forward guidance, allow 10-year bond yields to move in a wider band, or do both,” said Hiroaki Mutou, Chief Economist at Tokai Tokyo Research Institute.

Nevertheless, the Ninja bulls ensured to take intermediate rests at a 1-month old slanting ascending trendline, preventing any downfall price action.

USD Index

After opening up near 98 level on Tuesday, the US Dollar Index attempted to make a positive move in the early hours. However, adverse USD-specific economic events disallowed Greenback’s upside drifts. Also, the sturdy 98.12 level restricted the daily upward movements.

US Dollar Index 240 Min 30 July 2019
US Dollar Index 240 Min 30 July 2019

Notably, the June MoM Personal Spending and Income data remained in-line with the market hopes. Despite that, June YoY Core Personal Consumption Expenditure (PCE) – Price Index reported 1.6%, 0.1% below the consensus estimates. Meanwhile, the June MoM PCE Index remained in-line with the previous 0.4% statistics. As a silver lining in the dark clouds, the June MoM Pending Home Sales data reported 2.8% over 0.5% market expectations.

AUD/USD

Today, the Aussie pair continued to extend the tumbling rally initiated on July 18. Quite noticeably, the AUD/USD pair made a Death Cross at 0.6988 mark in the European trading session. Following a Death Cross formation, the pair lost ground, dropping beyond 0.6934 mark.

AUDUSD 240 Min 30 July 2019
AUDUSD 240 Min 30 July 2019

In the evening session, the pair was testing the next target at 0.6869 support mark. However, a move beneath this support handle would have signaled for a definite weakness in the AUD/USD. Earlier the day, the June MoM Building Permits recorded -1.2% over -1.0% forecasts. Also, the YoY Building Permits reported -25.6%, missing estimates.

EUR/USD

The Fiber started the day near 1.1142 level, marking the daily high near 1.1160 psychological mark. If the pair had moved above the 1.1160 mark, then that would have activated the overhead 200-day SMA. Anyhow, the Eurozone July Business Climate came around -0.12 points over 0.08 points. Meantime, the German August Gfk Consumer Confidence Survey came in-line with the 9.7% estimates. Somehow, this Confidence Survey remained lower than the previous 9.8%. The bulls lost complete hope after the release of the downbeat France Q2 QoQ GDP data release. The GDP figures reported 0.2% over 0.3% estimates.

USD/CHF

The Swiss Franc pair appeared to drop after testing the 0.9918 resistance handle in the European trading session. The pair seemed to lose control over an 11-day old slanting ascending support line.

USDCHF 60 Min 30 July 2019
USDCHF 60 Min 30 July 2019

Anyhow, bullish perspective remained intact for the USD/CHF pair as the pair traded well above the significant 200-day SMA. The Switzerland July KOF Leading Indicator came out 97.1 points, 4.41% higher than the street estimates.

About the Author

Nik has extensive experience as an Analyst, Trader and Financial Consultant for Global Capital Markets. His vision is to generate Highest, Consistent and Sustained Risk-Adjusted Returns for clients over long term basis and providing them world-class investment advisory services.

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