[B]Daily Fundamental Dose: 08 – March – 2017[/B]
Hello Traders,
Although economic platter was almost empty during Tuesday, global financial markets remain optimistic about the Federal Reserve’s March rate-hike, which in-turn helped the greenback to avoid largest trade deficit since March 2012 and resulted another positive daily closing by US Dollar Index (I.USDX). The EUR weakened with German Factory Orders plunging to more than eight years low whereas GBP extended its south-run on weak consumer spending data. Further, the AUD had to liquidate some of its early-day gains, earned through RBA statement, but the NZD and CAD kept running down as strong USD continue providing a drag to commodity basket, including Gold and Crude. Additionally, fading tensions from Korea weakened safe-havens, like JPY, whereas CHF dropped on SNB Chairman’s comments that France was significantly over-valued.
Economic calendar is likely to repeat the yesterday’s pattern on Wednesday as there isn’t anything major, except US ADP Employment figure and US Crude inventories, scheduled for publish. However, early-day release of Japanese GDP and Chinese Trade Balance have already triggered some moves. Japanese GDP grew 0.3% during Q4 2016 from 0.2% initial estimation and registered fourth consecutive quarterly rise, the longest in more than three years, while Chinese Trade deficit widened but increase in imports gave sigh of relief to commodity traders.
At political front, US President Donald Trump plans to meet with a group of infrastructure business leaders at the White House and might reveal additional details of his planned spendings which in-turn can offer additional strength to USD Bulls. However, weaker ADP print could signal soft NFP and can confine extreme gains of the greenback. Further, UK Budget release may also give intermediate strength to the GBP, if favorable to the new UK, else the Pound can keep running down. On the other hand, Crude inventory level is likely to post smaller figure than previous rise and can help Crude and CAD prices whereas latest rise in JPY may become a reason for USDJPY to revisit 113.50 support.
[B]Technical Talks[/B]
Following its bounce from 0.6950-45 support-zone, the NZDUSD is likely to revisit 0.7000 psychological magnet and a break of which can extend its recovery towards 0.7040-45 but the NZDJPY isn’t showing signs of reversal and might continue declining towards 78.80 & 78.50 supports with 79.75 acting as immediate resistance. Moving on, EURJPY is struggling around 120.00 support with bounce being more likely to propel the quote towards 120.40 & 120.75; though, a downside break becomes detrimental and can flash 119.70 & 119.50 on the chart.
Have a nice trading-day ……