Top Market Movers: NZDUSD, USDJPY, USDCHF

NZDUSD

Dollar Employment
Rocks Kiwi

Kiwi dollar resumed its
decline as positive US data lent to the pair’s overall drop on the session.
According to ADP”s payrolls report, June employment showed a rise of 368,000
new posts created. The optimistic report was followed by a
stronger than expected factory orders survey that showed a exponential bounce
of 0.7 percent versus consensus expectations of a 0.1 percent climb.
Both reports added to speculation that this week’s non-farm payrolls report
will likely show a greater addition than the anticipated 170,000 addition.
Subsequently, sentiment is likely to bank of higher rate increases in the near
term as growth continues to be evident in the world’s largest economy.
The sentiment fed broader based selling in the pair, taking the major through
stops that were triggered all the way down to the day’s 0.6033 session low.
Cross bidding in the AUDNZD added to the decline in the major.
Looking ahead, the employment report remains a heavy weight in the week’s
reports as most of the market will be focusing on the survey, casting aside
the realistically thin list of New Zealand based data. With
economic data weaker in the Kiwi economy as of late, further declines in the
currency remain imminent.


Currency


Daily Percentage Change (%)


Intraday High


Intraday Low


Day’s Range (pips)


NZDUSD


-1.0%

0.6119

0.6034

85


USDJPY


+0.7%

115.79

114.61

118


USDCHF


+0.6%

1.2359

1.2204

155

Rumormill

Buying pressures looks to creep in on profit taking ahead of the Asian session. As a result, the price looks to be bid at the 0.6035 and slightly lower. Comparatively, selling pressures are emerging at the 0.6070 and 0.6075 figures, keeping the pair underwater.

USDJPY

Yen Major Drops On Missile Tests

Bad fortune continues to place pressure on the Japanese yen, with today’s North Korean missile tests likely a thin argument to continue the selling. With the dollar reports in the morning lending to further rate hike bias, the pair had no way to go besides higher. This places the pair as the highest gainer and second ranked mover on the session. The only sentiment in favor of a stronger yen continues to be the looming probability of a 25 basis point rate hike at the July meeting. Although earlier than some had suggested, the decision has a higher probability of passing through as growth continues to pressure the Bank of Japan in reassessing current policy. The suggestions also come on the heels of positive rhetoric issued by policy officials. Next up for the Japanese currency looks to be the coincident and leading economic index reports. Although rather important in the overall landscape, both reports are simple compendiums of already posted reports, and thus more predictable on the trading front.

Rumormill

Selling pressure continues to reside in protecting the 116.00 figure with plenty of offers below at the 115.90 figure and the even handle. Stops are ranked at the figure and slightly above on the potential break with more stops slightly higher.

USDCHF

Dovish Comments Help To Fuel Losses

US economic data also had its hands in the decline witnessed by the USDCHF currency pair. With heavy German selling in the overnight, the pair took a hit on the same ticket as the previous two market movers on the day. The more positive outlook on the US rate hike picture pushed traders to take dollar bets, even more so following slightly more dovish comments by Swiss National Bank President Roth. Speaking to the press, the SNB President noted that inflationary conditions remain under control following the last decision to hike rates. He also concluded that the central bank sees slowing economic growth, slightly below the previously expected 2-3 percent at a 1.5 percent rate as growth productivity and further “fundamental characteristics” remain unsustainable. This is a blow to the Swissie as most had anticipated further rate hikes in the near future. The SNB last week raised interest rate ranges to 1-2 percent. This will make Friday’s US employment even more important as the thin Swiss schedule leaves little for the Swiss bull to hope for.

Rumormill

Sellers are coming in at the 1.2360 and 1.2370 figures with bids for buyers just emerging above the 1.2300 even handle. Further buying interest resides lower, but remains thin on rising employment speculation.