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Despite the unrest ongoing in Hong Kong, the US dollar remains on its backfoot against the Hong Kong dollar in sessions. The pair just reached its lowest level since mid-April 2017. The fundamentals are appearing to work in favor of the HKD as the pair is still widely expected to continue its bearish direction in the near-term run. However, it’s still unknown whether the USDHKD pair has enough power to pull the pair lower past its support. As said, the pro-democracy movement in one of Asia’s financial hub. The resiliency of Hong Kong national are still unbeatable, and it is very evident as businesses across the Chinese special administrative region continue to be affected by the pro-democracy movements. Fortunately, Hong Kong’s economy is gradually recovering. Recently, Hong Kong’s manufacturing purchasing managers’ index reportedly rose from 38.5% to 42.1%, topping forecasts of 36.5% improvement.
The US dollar is trying to stand firm and is trying to bounce back against the Singaporean dollar, unfortunately, it appears that it’s not working well as of today’s trading. The greenback is in deep waters against Singapore’s currency. The healthy data from the US economy is lacking the strength to support the USDSGD pair. The pair is believed to reach its support by the end of the month, or perhaps by the first few days of February. However, bears will have a tough time trying to pull that off, as Singapore’s consumer price index for December is forecasted to remain unmoved. Investors will just have to wait and see whether the Singaporean CPI will surprisingly improve. Still, bears aren’t losing hope because despite the challenging 2019 for some emerging markets, Singapore continues to beat forecasts, securing billion-dollar investments to support the economy and the Singaporean dollar.
The Australian dollar continues to sink against the safe-haven appeal of the Swiss franc. Today, the Australian dollar is steadying and trying to regain its composure as China’s gross domestic product is in focus. The official GDP report of China came in just as the market predicted, giving support to the Aussie in current sessions. However, the pair is still widely expected to continue its bearish run in the coming sessions. The AUDCHF is believed to decline lower and reach its support by the first few days of February. Meanwhile, the Swiss franc continues to fight against the odds – namely the disappointing unemployment rate of Switzerland and the first phase of the US-China trade deal. The signing ceremony for the partial trade agreement failed to stop the Swiss franc from rallying against the Australian dollar earlier this week, suggesting that the currency still has a lot of power stored to reel the pair even lower.
Despite the Canadian dollar’s upward momentum starting to slow down, the CADJPY pair is still expected to inch its way up to its resistance by the end of the month. The strong employment and unemployment data from Canada are helping it hold on to its bullish momentum. Just recently, Statistics Canada released the official employment change in Canada for the month of December showing great improvement from -71.2K to 35.2K. The impressive rebound in the employment change results caught the market off guard as experts only predicted an improvement of 25.0K prior. And for the Japanese yen, its faltering safe-haven appeal is overweighing the improvements in the Japanese economy. Thanks to the recently inked trade agreement between the world’s two biggest economies – the United States and China – the Japanese yen’s shine is failing to attract more investors, brushing off the strong core machinery orders results from November.