Charts and Market Updates December 10, 2019

Charts and Market Updates December 10, 2019

NZDUSD

Trades talks are ticking, and the pair is slipping. But that won’t be the case for long as the New Zealand dollar is projected to fortify itself amid the US-China trade war. Bulls are looking to push the NZDUSD pair upward to its resistance as 2019 draws to an end. As of the moment, the pair is slipping as a result of traders cautiously weighing the upcoming Chinese inflation data. Still, with Trump’s incoming tariffs, its highly doubted whether the US dollar will have enough fuel to drive the pair downwards in the near-term trading. Also, traders are hoping for good figures from New Zealand’s GDP after the Australia and New Zealand Banking Group, or ANZ, reported the monthly New Zealand Truckometer results for November. This tracks the flow of traffic in the country and according to its Heavy Traffic Index, the November car congestion dropped from 2.5% prior to -1.5%, making a significant impact on the country’s gross domestic product. December 10, 2019

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AUDCHF

With only limited economic data and just the SNB’s interest rate decision on Thursday, AUDCHF traders are looking for different fundamentals to clarify the direction of the pair. Now, as there are only a few more days until the US President Donald Trump raises another round of sanctions, the safe-haven appeal of the Swiss franc shines through in trading. Trade war concerns are seemingly brushing off the lackluster figures from recent reports about Switzerland’s economy. The country produced bland figures in its November Unemployment rate and Consumer Prices Index recently. Just yesterday, the Swiss State Secretariat for Economic Affairs SECO reported a retainment in the country’s non-working citizens at 2.3%, meeting forecasts along the way. So, fortunately for the franc, Trump’s giving it a boost. Still, the pair isn’t expected to move wildly in the coming sessions but just gradually inch lower.

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GBPJPY

Calendars are marked and traders are ready, the UK December 12 elections is expected to shock the British pound in the forex markets. The safe-haven glow of the Japanese doesn’t stand a chance against the sterling once traders bask after the UK election, in which Boris Johnson and the Tories are highly anticipated to win. The GBPJPY hits levels last seen in early May this year thanks to the additional kick from the recovery of the UK manufacturing sector. Earlier today, the Office of National Statistics showed that the UK manufacturing production bounced up from -0.4% to 0.2% in November on a Month-over-Month basis. The kingdom’s factory sector slightly edged above expectations of 0.1% improvement. Of course, the main contributor to the GBPJPY’s rise is the bullish biases over the Conservatives, as mentioned above, maintaining a good lead ahead of the opposition Labour Party. While Johnson snatched polls with 9-15% lead over Corbyn.

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USDCNH

The US dollar took advantage of the Chinese inflation data that made headlines in today’s trading in Asian markets. The pair is bound to gradually climb up before 2019 ends. Official statistics from the Mainland showed China’s consumer inflation rising rapidly, in fact, the fastest pace in almost eight (8) years or 2012. The intense growth didn’t just hit the Chinese yuan, it also pushed Hong Kong and Chinese stocks lower in sessions. China’s consumer price index hiked 4.5% last month, November. The unstable acceleration of the country’s inflation is mainly due to the jump in food prices, particularly on pork and meat products. China’s pork prices grew approximately 110% as the controversial African swine fever wreck through pig farms. Meanwhile, China’s producer price index declined in November by 1.4% on a Year-over-Year basis. The PPI reading followed through its 1.6% drop prior.

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