09.09.2015 - Investors are waiting for the decision of the RBNZ
Currency trading and the euro. The price of euro continues to consolidate near the important level of 1.12 amid uncertainty about the Fed raising interest rates after the meeting of the Federal Open Market Committee on September 16-17. The mixed labor market statistics, published on Friday, and risks associated with the crisis in China may keep the US regulator from raising interest rates in September. Today, the dynamics of trading can be affected by the statistics on the number of vacancies in the labor market of the USA (14:00 GMT). Our medium-term outlook remains negative.
Currency trading and the British pound. The price of the British pound has stabilized around the level of 1.54, after a confident upward price correction. In addition, investors are reluctant to open new positions ahead of today's publication of important statistics on the trade balance and industrial production in the country (8:30 GMT). We expect increased volatility today and keep the average market negative outlook.
Currency trading and the Japanese yen. The price of the Japanese yen continues to decline due to lower demand for defensive assets after improvement of investors' expectations about the prospects for China's stock market. At the same time the fall constrained by the positive statistics on GDP, which in the second quarter fell by only 0.3% against an expected decline of 0.4%. Today was published positive news on the growth of consumer confidence in the country to 41.7 in August. We expect the fall of the yen in the medium term.
Currency trading and the Australian dollar. The price of the Australian dollar corrected up after a steady decline over the past weeks. It is worth noting that the index of consumer confidence in the country fell to -5.6% against the expected 7.8%. The decline of the indicator is due to the slow pace of GDP growth, the weakening of the Australian dollar, and risks associated with the Chinese economy. We view this growth as a correction, but do not exclude the possibility of its continuation in the near future. Our medium-term outlook remains negative.
Currency trading and the New Zealand dollar. The price of the New Zealand dollar has corrected upwards following the Australian dollar, as well as the position fixation before the publication of the report and the statement of the Reserve Bank of New Zealand monetary policy (21:00 GMT). According to analysts, the interest rate will be reduced by 0.25% to 2.75%, which will be negatively displayed on the stock exchange in New Zealand, but we also pay attention to the rhetoric of the head of the RBNZ on future plans for the regulator. We expect the decline in prices in the medium term, and we expect a strong increase in volatility today.