Consumer confidence in New Zealand has dropped from 94.6 to 92.4 in September, according to the ANZ-Roy Morgan index. Zcash, a cryptocurrency focused on privacy, continues to rise and is trading around $360, even with market ups and downs.

Meeting Results

The recent meeting between Trump and Xi was predictable. The US will resume soybean exports, while China has reduced tariffs on fentanyl. Gold prices fell after approaching $4,050, but demand for safe-haven assets still offers some support. The GBP/USD pair is also down, nearing the 1.3100 level, losing over 2% against the US Dollar in October. Meanwhile, the EUR/USD has seen some interest, trading around 1.1575, but lacks strong upward momentum.

Bitcoin Whitepaper Anniversary

Today marks 17 years since Satoshi Nakamoto released the Bitcoin whitepaper, which started a $4 trillion cryptocurrency market. Japan is closely watching Forex movements and responding with urgency. China’s manufacturing PMI has dropped to 49 in October, while the non-manufacturing PMI has seen a slight rise to 50.1. The AUD/USD is around 0.6550 after China’s PMI data. The NZD/USD has reached a one-week low at about 0.5735. The EUR/USD is holding between 1.1550-40 as the USD solidifies gains after the latest FOMC meeting. We’re noticing a slowdown in China, with the manufacturing PMI falling into contraction at 49. This affects commodity currencies, pulling the Aussie and Kiwi dollars down. Given New Zealand’s recent drop in consumer confidence, using options to bet against further strength in NZD/USD and AUD/USD might be wise. The US dollar remains strong, as the market processes the recent hawkish tone from the FOMC. The tightening cycle of 2022-2023 showed how the Fed’s determination can drive significant dollar gains. With GBP/USD hitting six-month lows below 1.3120 and EUR/USD struggling at 1.1550, selling futures on these pairs seems like a smart move. There is a notable disconnect between the optimistic US-China trade framework and the price of gold, which fell short of an all-time high of $4,050. This suggests underlying fear in the market, likely due to continued global inflation, a trend since the pandemic. This environment is great for volatility plays, such as buying straddles on gold, allowing for profit whether fear increases or decreases. The British pound is showing significant weakness, extending its decline this month. The UK economy is displaying signs of stagflation, similar to challenges faced in 2023 when inflation rose above 6% while growth stagnated. This fundamental weakness indicates that shorting the pound against the dollar could have further potential in the coming weeks. While major currency and commodity markets are flashing caution signals, some areas of the crypto market are demonstrating resilience. Zcash is standing out amidst the overall risk-off sentiment, suggesting traders are focusing on specific narratives rather than making broad investments. As Bitcoin celebrates its 17th birthday, we should seek derivative opportunities in altcoins that are showing relative strength. Create your live VT Markets account and start trading now.

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