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Kiwi on the way to 0.75

Relatively high yield (compared to other major counterparts) and credit worthiness of New Zealand are making Kiwi an attractive investment vehicle. Rate cuts do not stem its appreciation. An intervention would not be particularly helpful in this environment.
Having traded to almost 0.74 at the end of August, 0.70 - 0.75 range is firmly in place. At this point, an upside extension seems more likely than a downside one. Stronger demand may come in near 50 DMA. 50.0% retracement of the 2014 - 2015 …
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RBA cuts again

The RBA cut its cash rate to a record low 1.50% from 1.75%. Rate statement does not look particularly dovish - there's no explicit hint of further easing though they didn't close the door on it either.
The reaction in the Aussie was in line with the cut being almost fully discounted. A spike lower was promptly reversed and the price was back to unchanged after a good hour. Still attractive yield, recovering commodities and Fed in no hurry to hike will keep the pair supported.
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TInna avatar
TInna 2 Aug.

thanks for the info. very informative!

al_dcdemo avatar

Yw :) I'm glad that you find it so!

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Decent volatility to start the week

There was quite a lot of movement for a Monday right after the open. Moves across major pairs were similar with the dollar gaining against higher yielding currencies and losing against lower yielding ones. The moves were then more or less reversed.
Euro broke above the descending trendline drawn off of mid and late December highs (~1.0935) and previous week high (~1.0945) but stalled and reversed ahead of Daily Resistance 1 (~1.1970). It has pulled back almost all the way to the big figure (1.09…
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DAY 26 - How Low Can the Bund Yield Go ?

Benchmark 10-year German government borrowing costs have never been lower, and while the prospect of them dwindling to zero and even below is highly unlikely, it is no longer inconceivable.
Slowing economic growth and a seemingly relentless decline in inflation across the euro zone, including Germany, has spurred buying of Bunds, meaning Berlin can now borrow for 10 years at less than 1 percent compared with 2 percent at the start of the year.
Expectations the European Central Bank will eventual…
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Polinka avatar
Polinka 27 Aug.

great work

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RBA Holds Rates at Record Low

Despite the fact that RBA has left it's main interest rates at record low level aussie has kept on rallying and the main reason is because in current low volatility environment investor who can't make a profit from a barely moving market are chasing yields and AUD/USD has long been one of the favorite currencies for the carry trade.
RBA left the interest rates unchanged at 2.5% and RBA's Stevens said :“The most prudent course is likely to be a period of stability in interest rates,” which c…
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Neu_spir8 avatar

If current 4H candle close below .9335 then am going short, perfect analysis man,all the best.

Daytrader21 avatar

Neu_spir8 I see what you mean with 0.9335 is a strong resistance level which previously has acted as support, a good level

ANABEVZ avatar
ANABEVZ 5 Aug.

good luck!

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Carry Trade Returns

In current low volatility environment (see Figure 1)it's quite hard for investors to pull out some decent profits so the carry trading strategy becomes more attractive as it generate yield. So in this regard if you wish to find more about the carry trade I'll recommend you to read my article: Carry Trade Returns
Figure 1. FX Market Volatility

Here is a quick look on what to expect with my article:
"Historically speaking when it comes to interest rates we are at historic low
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