Archives of “New Zealand dollar” tag
rssEuro Stoxx index falls for the first time in 11 trading sessions
European indices move lower today
The major European indices have closed lower today.
- The Euro Stoxx index fell for the first time in 11 trading sessions (10 higher closes).
- The German Dax came off of a record levels.
- The France’s CAC could not reach its all-time high from 2000
- German DAX, -0.5%
- France’s CAC, -0.9%
- UK’s FTSE 100, -1.0%
- Spain’s Ibex, -0.83%
- Italy’s FTSE MIB, -0.85%
- Spot gold plus $5.50 or 0.32% at $1784.85.
- Spot silver is up for cents or 0.21% $23.75
- WTI crude oil futures are down $0.35 or -0.49% at $67.60
- bitcoin is trading down $773 at $46,248. The digital currency traded above $48,000 today
- Dow is down -79 points or -0.22% at 35436
- S&P index is down -16.29 points or -0.36% at 4451.53
- NASDAQ is down 125 points -0.85% 14697.65
CFTC commitment of traders: EUR longs increase to 200K (all time largest long position).
Weekly FX speculative positioning data from the CFTC
- EUR long 200K vs 180K long last week. Longs increased by 20K
- GBP short 3K vs 15K short last week. Shorts trimmed by 12K
- JPY long 27K vs 31K long last week. Longs trimmed by 4K
- CHF long 17K vs 12K long last week. Longs increase by 5K
- AUD short 1K vs 1K short last week. Shorts trimmed by 4K
- NZD 0K vs 1K short last week. Shorts trimmed by 1K
- CAD short 30k vs 23K short last week. Shorts increased by 6K
Highlights:
- EUR longs continue to rise and are at new record long position at 200K. The largest short position all time is at -227K
- GBP position has been whittled down to near unchanged after being short by 36K at the beginning of June 2020
- AUD and NZD speculative positions are near unchanged
- CAD shorts are the more or less, the only short currency position (long USD position).
Trade the strong against the weak
NZD
One of the key trading maxims in the FX world is pairing strength against weakness.If you need a refresher on that concept please do check that out here. So, yesterday we had the RBNZ rate meeting which has given us a weak NZD bias. Going into the event a client was asking me what I was going to do before the RBNZ rate meeting. The answer was simple, wait. Waiting to for the central bank to show its hand. The RBNZ has now done that and that is what gives us a bearish bias.
Reasons for the RBNZ’s weakness
The RBNZ has launched a set of bearish policies extending its asset purchases programme and showing openness to negative interest rates. They increased their quantitative easing (LSAP) programme to $100bn and extended its length from 12 to 22 months. Furthermore, the RBNZ expressed a preference for a lower or negative OCR and a ‘Funding for Lending Programme’, while leaving all options on the table.
So, we now have a short to medium term NZD bearish bias, look to pair it with currencies as they show strength. Yesterday’s strong AUD employment data make AUDNZD longs appealing on pull backs.
CFTC commitments of traders: EUR longs spike by 32K to a record long level
Weekly FX speculative positioning data from the CFTC
- EUR long 157K vs 125K long last week. Longs increased by 32K
- GBP short 25K vs 15K short last week. Shorts increased by 10K
- JPY long 29K vs 19K long last week. Longs increased by 10K
- CHF long 8K vs 7K long last week. Longs increase by 1K
- AUD short 5K vs 0K long last week. Shorts increased by 5K
- NZD short 1K vs 2K last week. NZD switches from long to short. 3K change
- CAD short 13k vs 17K short last week. Shorts trimmed by 4K
Nikkei 225 closes higher by 1.59% at 22,945.50
Japanese stocks boosted by more upbeat Wall Street sentiment
The late surge by US stocks overnight is helping to give Asian equities a decent lift in trading today, though Chinese and Hong Kong stocks are weighed down by US-China tensions after Trump removed Hong Kong’s special status earlier in the day.