| Currency <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /> | Daily Percentage Change (%) | Intraday High | Intraday Low | Day's Range (pips) |
| NZDUSD | -1.3% | 0.6290 | 0.6192 | 98 |
| USDCAD | +1.1% | 1.1133 | 1.0973 | 160 |
AUDUSD | -0.9% | 0.7451 | 0.7369 | 82 |
NZDUSD<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
<?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Kiwi Falls On Backs Of Commodities
Kiwi dollars sold off on broader market weakness as dollar bids ran heavy in the afternoon session. Following on the backs of the commodity bloc, the Kiwi was boosted in the morning on a short squeeze that took the major pair through the open at 0.6204. Following the weakness in commodities and a stronger dollar the single currency fell from the session highs above the 0.6250 figure and is now consolidating ahead of the Asian session. Attributed to the downside were commodity prices that retraced further as base metal contracts including copper and silver fell along with gold bullion that pulled even farther away from the $600 an ounce mark. Crude oil contracts additionally pulled back following a dissipation of supply concerns. The lone economic report even failed to add a reprieve to the decline. Retail sales figures for the month dipped by 0.1 percent versus expectations of an uptick in the report. The survey results quelled any rumored speculation of further rate hikes in the Pacific Asian economy as inflationary pressures continue to be a concern for Governor Bollard.
USDCAD
Commodity Bloc Leader Dips On Proft-Taking
With no economic data on tap Canadian sellers sparked profit taking over the two session gain as the commodity bloc component followed lower base metal and energy contracts throughout the North American session. Interestingly, this is the third time the major pair has tested the 28-year low without even a strong consideration as profit taking has led the pair back higher above the figure. Subsequently, todays data had a hand in the action as producer prices sparked further suggestions of a near term rate hike by the Federal Reserve at the end of this month. Excluding the food and energy components, core prices rose higher than the consensus, bolstering confirmations that inflationary pressures are continuing to make their mark on the economy. Even more positive were the months retail sales figures as the report came in line with consensus figures. Looking ahead, as we enter the Asian session, lighter reports are expected tomorrow with new motor vehicles and manufacturing shipments next up.
Rumormill
Bidding interest remains heavy at the North American close as selling pressure is coming in heavy at the 1.1135 and 1.1175 figures. Even heavier considerations are surfacing at the 1.1250 figure.
Technically Speaking
The USDCAD bounced back from levels near its recent 18-year low to push nearly 200 pips higher on the day. Setting the stage for a clear triple-bottom, the pair held stiff support in the 1.1930-1.1960 range to break through yesterdays high of 1.1072. The currencys steep ascent closed just under the 61.8 fibo of the past weeks decline at the 1.1135. Given its relative significance, a break above this level would certainly be bullish. However, a confirmation of a triple-bottom reversal would only come after the currency crosses formidable resistance at the 1.1250 level.
Gold Takes A Hit Along With Aussie
In similar fashion with the other bloc components, Australian dollar positions had a negative tone to them in New York following considerable declines in base metals. Notably, gold bullion contracts on the New York Mercantile Exchange were shaken down by about $44 as crude oil stayed lower. The subsequent dollar bidding took the pair below to around 0.7360 as option interest is expected to cap any further downside in the pair at 0.7365. Stops under that at 0.7360 look to hold, however, should the level break, sellers would re-emerge till 0.7315. Comparatively, sellers are residing heavy above the morning levels and look to keep the bearish presence felt.
Technically Speaking
The Aussie thundered through the 50.0 fibo of its run from 0.7014-0.7791 to set new 2-month lows. Further declines would likely test the 61.8 fibo of the same uptrend at approximately 0.7310, and a close below this level would confirm the end of its previous 2-month climb. Conversely, previous intraday lows near 0.7350 could provide the support needed for a bounce back to 0.7500.
