10 August 2017 Daily Analysis
Soured kiwi as doves visit RBNZ.
Kiwi hunched lower during Asian trading hours on Thursday amid seemingly dovish sentiment portrayed by the central bank on future policy outlook. Pair of NZD/USD sheds 0.24% while hovering near $0.7348. Reserve Bank of New Zealand (RBNZ) held its interest rate unchanged at 1.75% while commenting that the current neutral stance on monetary policy may persist while inflation projection well anchored at around 2%. Governor Graeme Wheeler stated that there are numerous uncertainty in the market and the policy may need to accommodate current conditions. In the other region, greenback was held unchanged at 93.40 while investors await major economic docket for further prospects. Both producer and consumer price index is expected to provide further market direction as previous softer-than-expected inflationary pressure has been the main concern for the Federal Reserve.
Otherwise, crude oil price extended gains by 0.12% to $49.62 after investors cheered industry data which shows a sharp drop in US crude supplies. According to Energy Information Administration, crude stockpiles fell by 6.5 million barrels last week, confounding forecast for a draw of only 2.7 million barrels. Likewise, gold price stacked up 0.22% to $1,275.86 as North Korean tension continues to stoke higher risk in the market.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Economy Data
Time Market Event
05:00 NZD RBNZ Monetary Policy Statement
05:00 NZD RBNZ Rate Statement
05:00 NZD RBNZ Gov Wheeler Speaks
09:10 NZD RBNZ Gov Wheeler Speaks
Tentative CrudeOIL OPEC Monthly Report
22:00 USD FOMC Member Dudley Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 05:00 | NZD – RBNZ Interest Rate Decision | 1.75% | 1.75% | 1.75% |
| 16:30 | GBP – Manufacturing Production (MoM) (Jun) | -0.2% | 0.0% | – |
| 20:30 | USD – Initial Jobless Claims | 240K | 240K | – |
| 20:30 | USD – PPI (MoM) (Jul) | 0.1% | 0.1% | – |
| 20:30 | CAD – New Housing Price Index (MoM) (Jun) | 0.7% | 0.4% | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level of 1.2980. However, as both MA lines continue to expand downwards after the formation of death cross, GBPUSD is expected to extend its losses and retest at the support level of 1.2980.
Resistance level: 1.3030, 1.3080
Support level: 1.2980, 1.2905
EURUSD
EURUSD, H4: EURUSD was traded lower following prior retrace near the 20-MA line (red). Both MA lines which continues to expand downwards suggests further downside bias for EURUSD to advance further down and retest near the strong support level of 1.1720.
Resistance level: 1.1780, 1.1840, 1.1900
Support level: 1.1720, 1.1650
NZDUSD
NZDUSD, H4: NZDUSD was traded in a downtrend following previous formation of death cross by both moving average line. Recent breakout from the support level of 0.7330 suggest further downside bias towards the target of support level at 0.7300.
Resistance level: 0.7330, 0.7375
Support level: 0.7300, 0.7275
USDJPY
USDJPY, H4: USDJPY threaded water near the support level of 110.00 following prior rebound from the lower levels. As both moving average line continues to expand downwards, in tandem with the current downtrend suggests USDJPY to extend its losses after closing below the level of 110.00.
Resistance level: 110.35, 111.00
Support level: 109.90, 109.45
CrudeOIL
CrudeOIL, H1: Crude oil price remained traded within a narrowing triangle following prior retracement from the top level. Stochastic Oscillator which illustrate retracement signal from overbought level suggests short-term downside bias to advance lower towards the target of 49.40.
Resistance level: 49.60, 49.80
Support level: 49.40, 49.15
GOLD
GOLD_, H4: Gold price extended gains following prior closure above the strong resistance level at 1270.00. Both MA lines which continues to narrow upwards suggest gold price to extend its upward momentum after closing above the resistance level of 1276.40.
Resistance level: 1276.40, 1286.00
Support level: 1270.00, 1261.10