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The Australian dollar is in a rough spot against the US dollar in the foreign exchange market. Despite the recent round of the pair, bears are still expected to pull it lower in the coming sessions. Looking at it, it’s still very much unknown whether the greenback has enough strength to push the Aussie past its support. Investors are closely watching the impact of the official signing ceremony for the first phase of the US-China trade deal that will take place later this Wednesday. High-level officials from China flew to the center of American politics, Washington, for the highly anticipated phase one of the trade deal. However, bulls aren’t giving up and are trying to remain optimistic. AUDUSD bulls are waiting for the Chinese gross domestic report due later this week and are praying that it will turn out as expected or even better than what was forecasted. Aside from that, AUDUSD bulls are also hoping for better results in the Australian home loans data and the November new home sales.
The British pound is in trouble. Despite the signing of the US-China trade deal later this Wednesday, the pair is still widely expected to decline to its support levels by the end of the month or by the first few days of February. More investors are getting worried as more news about BoE policy makers are considering and are saying that they are willing to ease the interest rates by end of the month if there is no significant progress in the United Kingdom’s economy. If that comes to reality. The pound could collapse past the support levels. The week figures from Britain’s November industrial production report released yesterday is weighing heavily on the pound in sessions. To make it even worse, the United Kingdom’s monthly and yearly gross domestic report, also issued yesterday, both showed contraction in November. Aside from that, the improvement in Switzerland’s CPI for December is giving bears the power to pull the pair lower.
The kiwi is in for a rough ride against the loonie in sessions. NZDCAD bears are doubling their efforts to pull the pair down to its support levels by the first half of February. The great results from Canada’s labor force are charging the tanks of bears, giving it the energy to drive the pair downward. Just recently, Statistics Canada released the country’s employment change report showing an impressive improvement from -71.2K to 35.2K new workers for the last month of 2019. Bears were delighted as the results came in way better than the projected 25.0K growth. Aside from that, Ottawa’s unemployment dropped down by 0.3%, meaning that it went down from 5.9% to just 5.6% in December. Then, in the case of the New Zealand dollar, the massive drop in the country’s monthly building consent report for November makes it even harder for it to fully regain composure in the forex market.
With the help of the signing ceremony of the US-China trade war scheduled later today, the EURJPY remains on track to climb up to its resistance in the market. The safe-haven appeal of the beloved Japanese yen will falter in the coming sessions if the relationship between the two economic behemoths gets better. The pair is expected to reach its resistance before the month closes, but that doesn’t mean it will be a smooth rally for EURJPY bulls. Meanwhile, tomorrow, the big boss of the European Central Bank, Christine Lagarde, is expected to give a speech. This gives bulls hope as Lagarde has been a great leader for the central bank; during her first speech, she successfully avoiding causing the single currency to collapse which is a common mistake for newly appointed central bank heads. Looking at the bigger picture, the economies part of the bloc are showing gradual signs of improvement, helping the euro rise with it.
- Trading Instrument