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Aussie, Kiwi bounce off lows

“The value of an idea lies in the using of it.” —Thomas Edison

 

 

 

HEADLINES

 

 

 

  • Australia, NZ dollars try to rally, commodity surge a help
  • Asian stocks, euro hold steady ahead of U.S. inflation data
  • Oil slips from 7-year highs ahead of more U.S.-Iran talks
  • Gold gains as inflation risks boost safe-haven appeal
  • Meta weighs on U.S. shares, European stocks rise after rout
  • NZD/USD: Potential for one last dip below 0.65 – Westpac

 

 

 

FOREX

 

 

 

Australia, NZ dollars try to rally, commodity surge a help

 

 

The Australian and New Zealand dollars were trying to sustain a rally on Tuesday as an improved tone in global equity markets and strength in commodity prices offered a break from recent selling.

The Reserve Bank of Australia (RBA) continues to argue that inflation is not as much of a threat in Australia as in some other developed nations and it thus has scope to be patient on interest rates.

While markets see a risk the Federal Reserve will hike by a full 50 basis points next month, futures are not priced for an RBA move to 0.25% until June.

 

 

Asian stocks, euro hold steady ahead of U.S. inflation data

 

 

Asian equities consolidated recent gains as investors' sentiment improved amid strong results by U.S. companies, helping stocks recover from the worst start to the year since 2016, while a resurgent euro paused ahead of U.S inflation data.

Markets are still alert for rate increases in both the euro zone and the United States after the European Central Bank last week was considered to have adopted a more hawkish tone.

 

 

 

COMMODITIES

 

 

 

Oil slips from 7-year highs ahead of more U.S.-Iran talks

 

 

Oil prices eased on Tuesday ahead of the resumption of indirect talks between the United States and Iran which may revive a nuclear deal that could lead to the removal of sanctions on Iranian oil sales, increasing global supplies.

 

 

Gold gains as inflation risks boost safe-haven appeal

 

 

Gold prices climbed to a more than one-week high on Monday, supported by inflation worries and lingering geopolitical risks, as markets awaited key U.S. inflation data for cues on the Federal Reserve's interest rate hike trajectory.

 

 

 

STOCKS

 

 

 

Meta weighs on U.S. shares, European stocks rise after rout

 

 

Wall Street shares finished broadly lower on Monday, while European stocks rose following five straight weeks of declines and European bond yields soared on speculation of monetary tightening.

Markets are on alert for rate rises in both the euro zone and the United States after the ECB last week was considered to have adopted a more hawkish tone. The United States reported stronger-than-expected jobs and earnings data.

 

 

 

ANALYSIS

 

 

 

NZD/USD: Potential for one last dip below 0.65 – Westpac

 

 

“We retain a strong US dollar outlook, based on expected Fed policy tightening.”

“NZD has solid fundamental backing, but the RBNZ cycle is now fully priced and USD movements are likely to dominate.”

“Yield spreads are unlikely to be helpful. NZD/USD could weaken slightly further during the months ahead to 0.6500.”

 

 

 

CHART

 

 

 

Japan Nikkei 225 – Weekly Candlesticks

Source: GKFX Prime Metatrader 4

JPN225 has broken below the neckline of a double top pattern but then closed back over it the following week. It is a bullish failed reversal pattern while above the neckline at 27,000. - Prepared by Trading Writers*

 

 

 

CALENDAR

 

 

 

*Times in GMT

Source: FX Street Economic Calendar


SOURCES

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/nzd-usd-potential-for-one-last-dip-below-065-westpac-202202070949
https://www.reuters.com/markets/europe/global-markets-wrapup-1-pix-2022-02-07/
https://www.reuters.com/markets/europe/global-markets-wrapup-1-2022-02-08/
https://www.reuters.com/markets/europe/gold-gains-inflation-worries-outweigh-higher-yields-2022-02-07/
https://www.reuters.com/markets/rates-bonds/australia-nz-dollars-try-rally-commodity-surge-help-2022-02-08/