市場新聞與洞察

South Africa Update 8 th August 2017, the day president of South Africa, Jacob Zuma survived a no-confidence vote in parliament, which made sure that he will maintain power of one of the biggest economies in the African continent. It is worth noting that it was the eighth vote of no-confidence that Zuma has survived since being in charge. About Jacob Zuma Name: Jacob Gedleyihlekisa Zuma Born: 12 April 1942 Birthplace: Nkandla, South Africa Political part: African National Congress Jacob Zuma, who has been involved in corruption allegations since being elected as the president of South Africa in 2009, survived the vote by a majority of 198 votes to 177 after the vote was called by the Democratic Alliance party who accused Zuma of suppressing democracy.

Even though the motion was defeated, it might still have an impact on the party which currently leads South Africa. Unlike the previous no-confidence votes, the latest vote was held anonymously and there were suggestions it could reach 50 votes of no-confidence from the Zuma’s African National Congress party, which is the number required to pass the motion. Instead 24 members of his part voted against their leader, around 12 others refrained or failed to show up to the vote which would suggest further unrest within the party further down the line.

Many have suggested that Zuma will not last until 2019, which is when the next general election takes place. Financial Markets The South African Rand weakened against the US Dollar after President Jacob Zuma survived a no-confidence which could have ended his administration of the African nation. The decline was a big turnaround for the Rand which was the best performing major currency on earlier in the week.

Despite the result, it is unlikely to cause a major weakness as the result was largely priced in before the vote took place. USD/ZAR By: Klavs Valters GO Markets

NZDCAD - Daily To begin with, let’s take a look at the NZDCAD. Admittedly not the liveliest minor pair but in this instance, I think it is worth a mention. On the daily time frame, we can see the price is hovering around the critical support zone of 0.8850, an area that has been tested three times already this year but has failed to mount any significant challenges to the downside.

The latest candle suggests the bulls are attempting to regain control and we may see moves up to re-test previous areas of resistance. A potential catalyst for a bounce is lurking within the RSI indicator which shows NZDCAD heading into oversold territory. Upside targets start at 0.90 before testing the previous high of 0.9225.

Should the 0.8850 regions become unstuck, evidence of previous support is around last December’s lows of 0.87 EURUSD - Daily Not a great deal to discuss for the pair during this period of consolidation. However, it is interesting to see how price action is responding to the lower levels of the Ichimoku cloud shown above. Notice several recent attempts under the cloud before causing temporary reversals each time.

All the other indicators on this daily chart including the lagging Chikou Span (purple line) are bearish. At this point, we could see price retrace back to the previous low of 1.15080 before resuming an upward trajectory longer-term. I say this tentatively because if you look at the weekly chart, the price has not closed above the 200 EMA for the past seven weeks.

USOIL- Daily Lastly, without delving into the fundamental drivers of the commodity, displayed is the strong uptrend we have witnessed during the July to September period last year. Technically speaking, we require at least three points of reference to validate these lines, so confirmation is pending. There are also two weekly pivots in the region of 72.00 which could be the next port of call for the price of oil.

Above here, we are likely to see 74.00 tested as well. I think the point and figure chart below displays this more clearly. We have a bullish support line that remains steadfast, and the price is edging upwards to re-touch the 74.00 mark.

In both charts, it would seem 68.00 is the level to watch before revising the overall trend. It is also worthy of a downside target in the interim. By Adam Taylor CFTe This article is written by a GO Markets Analyst and is based on their independent analysis.

They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.

Have you spotted something unusual happening with the Japanese Yen? With the likes of protectionism dominating global headlines, the Yen is weakening amid broader risk aversion which is out of character for the currency. A Confidence crisis among Asian markets You have to wonder if the currency is absorbing some of the inherent uncertainty brought about by various negotiations in the region or whether there is something else at play?

Historically, we would expect to see signs of strength returning to the Yen in the USDJPY pair but so far we have not seen a great deal. Looking at the Daily charts below, evidence of bullish activity is rife. We see price action firmly in an uptrend above the longer-term moving averages and posting positive gains for July.

USDJPY – Daily At this stage, the chart suggests we might see a change in direction given the Relative Strength Index (RSI) is quite overbought, but it is hard to give this idea much validity in contrast with the other indicators. I suspect any sudden shift to the downside could see the weekly pivot level of 111.80 become a potential target. Alternatively, should the Dollar hold firm, it may struggle to break the 114.00 level as this area has proved somewhat resilient over the past year.

Not all the Yen crosses appear weak Ignoring the Dollar, let's take a peek at the AUDJPY cross as there could be an opportunity to go long Yen after all. Notice that we are approaching the top of a range on the daily and price action appears trapped in a sideways move. This range extends between the 84.50 and 81.00 levels, and with the price now touching 83.50 we're not too far away.

AUDJPY - Daily Has this pair found a ceiling? The 84.50 level is crucial as it marks the most recent high. It was last challenged in June but was short-lived; only one day to be exact.

This swift failed attempt suggests any further attempts may result in the same. Also, the weakness of the previous day's candles makes it appear the bulls are either fading or somewhat indecisive. This clue might be the turning point at which the pair gains some momentum in the opposite direction once again finding those support levels of 82.00/81.00.

We cannot get carried away though. As mentioned, the Japanese Yen is acting out of character as of late so we must not rule out the possibility of a further rally. Past 84.50 the next pocket of resistance appears to be at 85.50.

A quick glance at the hourly chart also highlights the willingness of the bulls to jump back in at any time. Look at how the price rebounded off the weekly pivot and followed through to the upside in the short-term. AUDJPY – Hourly Faith as a safe-haven restored?

Of course, many traders will still consider the Japanese Yen as a safer place to invest during times of turmoil. And I think Japan's government will take action to help relieve concerns. Only yesterday Japan signed a free-trade deal with the EU which is an enormous partnership and will go a long way to squash some of those fears.

We will have to wait and see in the coming weeks if the currency can restore its prowess as a safe-haven asset. Adam Taylor CFTe GO Markets This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions.

Trading Forex and Derivatives carries a high level of risk.

The Reserve Bank of New Zealand (RBNZ) will make its first interest rate decision for the year 2019. We will see the Press Conference, Rate and Monetary Policy Statement on Wednesday. Market participants are expecting the RBNZ to adopt the same dovishness seen lately by major central banks The Reserve Bank of Australia The Federal Reserve Bank The European Central Bank The Bank of England.

The global downside risks have increased, and major central banks are downgrading their growth forecasts. It is widely expected that the RBNZ will follow suit in the shift towards easing and echoed the RBA’s concerns. New Zealand’s economy has slowed in the second half of 2018.

Gross Domestic Product (GDP) grew by 1.0% in the June 2018 quarter compared to the September quarter whereby the economy increased by only 0.3%. June 2018 Quarter: GDP, Industry growth and contribution to growth. Source: Stats NZ September 2018 Quarter: GDP, Industry growth and contribution to growth.

Source: Stats NZ The Labour market reports received last week might add to a more cautious tone from the RBNZ. The Unemployment rate rose back to 4.3% in the December 2018 quarter, up from 4.0% (revised) in the previous quarter. The Housing sector is also experiencing volatility dragged by bank prudence, investor wariness, and affordability constraints, along with the foreign buyer ban, which prevents foreigners from buying homes.

Keeping these in mind, and in anticipation of the same dovish comments from the RBNZ, the markets are aggressively pricing in the chance of a rate cut later this year which is weighing heavily on the local currency. The price action of New Zealand dollar pairs will, therefore, depend on how dovish the RBNZ will be compared to the current expectations. It should be noted that odds of a rate cut were also on the table last year.

However, back in January, the released inflation data cast some doubts about a cut, and it will be interesting to see how the RBNZ plays out the growing global risks.

After a Liberal leadership crisis hit the Australian dollar last week, the victory of former Treasurer, Scott Morrison brought some relief to the markets given that he was the most market-friendly option. This week the Australian banks are in the limelight. The banking sector recently made headlines over the Royal Commission’s investigation but a month before the first findings of the royal commission are released, a surprise increase in the variable home loan rates by Westpac stole the show.

The reason behind the hike appears to be the “higher borrowing costs from international markets”. The impact on the financial markets was immediate: ASX200 touched another fresh 10-yr high boosted by the financial index which jumped by 1.5%. Source: GO Markets MT4 (Weekly Chart) The Australian Dollar dropped sharply and saw more than 70 pips movement after the announcement.

Source: GO Markets MT4 (Hourly Chart) Westpac's move is similar to the RBA tightening of the economy. The Reserve Bank was under pressure to hike interest rate, and such a move should have cheered up the Australian dollar. However, higher mortgage repayments and a stagnant economy were the reasons behind the reluctance of the RBA to increase the interest rate.

The bank independent pricing decisions will increase the mortgage burden on Australians who are already bearing higher living costs- rising energy prices and private health insurance costs. Subsequently, Consumer Confidence and household spending will likely take a hit and those concerns could put pressure on the RBA to take actions. A rate hike is unlikely, and the markets are either expecting the RBA to stay on hold for longer than expected or even reduce rate.

Loan funding pressures can change the dynamics of the current monetary policy as the probability of a rate hike in 2019 decreases while the possibility of a cut increases. The central bank would have to wait and analyse the impact of this sudden bank interest rate hike on the macroeconomic level. All eyes are on the next RBA meeting as the local currency could suffer a more profound decline on a deeper dovish RBA expectations.

Upcoming News » 6:30pm Construction PMI - GBP » No release time, GDT Price Index - NZD As expected the RBA cut interest rates by 25 basis points. The AUDUSD dropped on the news but has retraced most of its drop. The AUDUSD lost 54 pips to.7488, buyers have come back in taking it back above.7500.

The AUS200 lost ground after the disappointing building approvals and trade balance figures. It found some buying support post rates release but is currently still trading lower by 23 points. The USD and JPY have seen quiet trade so far today with small Asain session ranges.

Signs did come in we might be some JPY selling but currently, it’s very choppy with little direction. Tonight I’m looking for weaker opens in Europe with strong selling on the GER30 and UK100 overnight. The UK100 has broken out of a trend channel and is sitting around a support base.

Gold is showing active sellers at 1354 this could come in as short term resistance off 1355. Price is still in a short-term trend up but I would like to see 1354.20 closed above to show a continuation towards 1366 highs. AUDUSD – Considering the negative influences today the AUD has held up very well.

The rate cut took prices down to.7490, this area has shown support and indecision previously. We have seen this area reconfirm today. I’d be paying attention to this level for the near term.

Continued buying could set up a failed low if buying holds out tonight. US30 – Today’s price is sitting on a key short-term level. Overall we have a bearish channel.

The key level 18395 has seen 5 tests holding up so far. To the top, we have a lot of downward pressure. A break lower set’s in new prices not seen since mid-July.

A break above the channel sets up a continuation of the current trend which could offer a buy idea. If we see a break lower, I’d be looking for a test down to 18235. XAUUSD - Gold is showing a normal trend formation with the current retracement not overlapping its previous high. 1355 is showing short-term resistance.

Overall the picture still looks good on the Med term for continued higher prices. I would like to see any short term pull back to find support from 1333 to 1341. A break and close below 1333 could be indicating a lower high is coming in and confirming.

Good Trading. Please note that trading Forex and Derivatives carries a high level of risk, including the risk of losing substantially more than your initial investment. Also, you do not own or have any rights to the underlying assets.

You should only trade if you can afford to carry these risks. Our offer is not designed to alter or modify any individual’s risk preference or encourage individuals to trade in a manner inconsistent with their own trading strategies. All times are in AEST.

Written by Joseph Jeffriess, GO Markets Market Strategist