NZD/USD rallies on Wheeler comments

USD/JPY and the JPY complex traded up on flows into and post-Tokyo fix, the Nikkei rally and higher US yields. Japanese importers were on the bid, unnerved by last night’s surge in crude oil prices. Buying from this bloc was noted in New York and looks to have continued into Asia with specs also joining the fray. The Nikkei rallied too after consecutive rallies on Wall Street and is now up 2%+/close to 400 points. US yields moved higher still with Treasury 10s up from 1.78% at the NY close to 1.792% early in Asia, later to 1.811% and now indicated at 1.806%. USD/JPY rose from 117.21 in NY to 117.47 early in Tokyo and then 118.00. Option-related offers on expiring 118.00 vanilla strikes helped cap the upside. Offers trail up but stops are mixed in above 118.00, 118.30, 118.50 and 119.00. EUR/JPY continued to see buy-backs in Asia, up from 134.74 to 135.35. GBP/JPY rose from 177.96 to 178.79 and AUD/JPY from 91.22 to 92.17. NZD/JPY fell initially to 85.77 on dovish comments from RBNZ Gov Wheeler but short-covering saw it surge later to 87.45.

EUR/USD opened in Asia at 1.1477 after soaring overnight on optimism over Greece, weaker US data and short-covering. Acceleration of the oil price correction helped. Once again sidelined in Asia, it was relegated to a tight 1.1455-79 range, off from the high on USD/JPY-led USD strength. The EUR/USD correction yesterday was capped at the 20-DMA at 1.1535. The 20-day comes in at 1.1517 today and players will continue to eye this and the EUR-crude oil correlation. A break and close above 1.1520 targets Fibo 38.2% retracement of the 1.2570-1.1098 move at 1.1660.

GBP/USD see-sawed between 1.5139-65 in Asia, consolidating gains seen overnight. EUR/GBP traded 0.7560-70, also consolidating after gains yesterday.

USD/CHF traded better bid between 0.9234-64 in Asia. EUR/CHF remained bid between 1.0580-1.0622 and maybe looking to break higher.

AUD/USD opened in Asia at 0.7792 and traded down to 0.7752 before bouncing later to 0.7808 on NZD/USD moves. Bears look to be back in the closet but for how long?

NZD/USD closed in New York at 0.7355 and still in play with a mixed jobs report sending it down from 0.7438 to 0.7332 before surging back to 0.7395. Early Asia saw it trade between 0.7340-60. A knee-jerk drop to 0.7288 was seen on what looked like a more dovish RBNZ tack but conditionality and short-covering saw it surge back to 0.7423. With the market still seen caught short, more upside could be seen. Tech resistance is eyed pre-0.7450.

The post NZD/USD rallies on Wheeler comments appeared first on Forex Circles.

Source:: NZD/USD rallies on Wheeler comments

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