Category: Financial Markets
The RBNZ said on 14/09 that it will abruptly cease its quantitative easing programme, prompting many economists to push back their forecasted NZ rate hike to August. The next gathering of the bank is set for August 18.
The Australian currency plummeted against the New Zealand dollar as a result of the announcement, with the Reserve Bank of Australia’s (RBA) own guidance indicating that rates will not be raised until 2024. Bank bill futures, on the other hand, suggest that the RBA will begin tightening in late 2022.
Australian dollar has been sliding in recent weeks
Following the June labour force report, which showed the unemployment rate fell to a decade-low 4.9 percent, the Australian dollar continued its downward trend on Thursday, falling 0.3 percent to US74.61. The Australian dollar has been sliding in recent weeks, falling over 3.5 percent in just the previous month.
Despite exceeding economists’ estimates, the robust jobs data failed to halt the downward trend. The labour survey came before Sydney’s draconian limitations and the imposition of a fifth lockdown for Victorians to control a new outbreak, so most investors ignored the news.
Experts Comments
“As the leader of the hiking bloc, money should just pile into the Kiwi,” said Westpac senior currency strategist Sean Callow. “The Australian will not gain much with the Kiwi, and we expect the cross rate to break substantially lower.”
“The market is now more worried about the consequences of the NSW lockdown on future months’ numbers,” said Ray Attrill, head of FX strategy at NAB. “GDP might be negative in the third quarter, which would support the RBA’s assertion that it is playing the long game.”
Source: afr
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
The Australian dollar has struggled last week, as we have been unable to breach above the 0.75 handle. However, if Australia continues to tighten its grip on the market, it will be intriguing to monitor.
The lockdown has already stretched from Sydney to Melbourne, and given enough time, the Australians will find a cause to lock down the rest of the country. At this moment, I believe the Australian dollar is poised to decline to 0.70, particularly if we can breach below the 0.74 mark.
If we wear down below that level, I believe the bearish trend will ramp up, and the scenario will indeed be more or less a danger event. The US Currency Index keeps threatening a breakout to the higher, indicating that the US dollar is gaining traction.
This would be fascinating to see if this plays out, because we are presently on the verge of a breakdown, and at that time, I would not only continue to be short the Australian dollar, but I would also be looking for ways to add to my position.
Source: fxempire
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
Bitcoin, despite its decline, continued to gain dominance
Despite its decrease, Bitcoin (BTC) maintained its dominance this week, accounting for 46.3 percent of market value, a concerning indicator for big altcoins. While Bitcoin (BTC) lost 6% this week, big altcoins lost even more. With an 11 percent decrease this week, Ethereum (ETH) has fallen below $2,000 and is already challenging important support at $1,800.
Polkadot (DOT), Dogecoin (DOGE), Uniswap (UNI), Solana (SOL), and Polygon (MATIC) are among the most popular cryptocurrencies, all of which are down by more than 20%. The current state of the market is one of indecision and inactivity. The trading activity on major cryptocurrency exchanges remained relatively modest, indicating investors’ cautious attitude.
Bank of America allowed some of its clients to trade BTC
The Grayscale Bitcoin Trust (GBTC) will release 16,240 BTC worth of shares on July 18. The announcement could cause Bitcoin values to fluctuate in either direction as investors adopt a wait-and-see attitude. Bank of America, the second largest bank in the United States, has apparently allowed some of its clients to trade BTC futures. Argentina was said to be introducing a measure earlier this week that would allow workers to take Bitcoin as payment.
France has advocated for an EU-wide cryptocurrency regulation that would give the European Securities and Markets Authority (ESMA) in Paris more power and control over the region’s booming crypto industry.
Paypal and Visa, for example, have decided to maintain Bitcoin and other cryptocurrencies. Paypal has stated that its clients will now be allowed to buy crypto for up to $100,000 every week, a five-fold boost in buying limitations. After reporting crypto-linked card usage of $1 billion or more in the first half of 2021, Visa released a new version of a physical Bitcoin Debit card in Australia.
Source: economictimes
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
Many people were not surprised by Square’s decision to enter the digital asset custody and service business. In June, at the Bitcoin 2021 Conference in Miami, Jack was at his eloquent best, revealing that Square was playing with the notion of a hardware wallet.
Square’s recent move is dissected
The global digital asset management (DAM) market is expected to expand at a compound annual growth rate (CAGR) of 12 percent from $3.4 billion in 2020 to $6.0 billion in 2025. Institutional institutions like Morgan Stanley and Goldman Sachs, as well as corporations, have recognised the digital currency space’s growth potential.
Secure custody alternatives for managing and using digital assets are in high demand around the world. Square’s desire to be a force to be reckoned with in this arena is self-evident.Wallets for digital currencies are used to receive, send, and store them. Hardware cryptocurrency wallets, also known as “Cold Wallets,” are more secure than “Hot Wallets” like desktop and smartphone wallets. Asset security has been raised by all market players, including retail and institutional investors.
Hardware Wallets’ Security
Hardware wallets have been known to be hacked in the past. Ledger, a Bitcoin hardware wallet supplier, was hacked in July of last year. More than 1 million user accounts were hacked. To establish itself as a strong and trustworthy player in the custody service space, Square would have to solve concerns about wallet security.
Source: Economic times
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
In a quiet Asian trading session on Monday, the AUD/JPY remains under pressure around 81.45. As a result, the cross-currency pair has failed to maintain Friday’s rally off the monthly low while remaining below a downward sloping trend line that has been in place since June 25. The MACD signs are also in favour of the selling.
However, the pair’s potential decline is hampered by an oversold RSI and proximity to the major moving average. For the time being, AUD/JPY trades are aimed at 200-DMA support near 81.20, followed by the 81.00 level. However, the pair’s further decline could be challenged by January’s high near 80.90.
The 50 percent Fibonacci retracement of the September 2020 to May 2021 upside, near 79.50, will be the key to watch if the bears keep the reins below 80.90. In the meantime, any correct pullback will be deemed mild unless it stays below a short-term resistance line near 82.30.
Following that, the bulls may be enticed by the recent swing high near 82.80 and April’s low near the 83.00 round figure.
Source: fxstreet
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.