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The South African rand is in danger against the US dollar in sessions. The USDZAR will have an upswing movement in coming sessions, although the rand is trying to hold itself against the US dollar as seen evident in last week’s run. Buck traders are waiting for the official minutes of the US Federal Reserve’s last meeting as news from the US-China starts to dry up. The South African rand wasn’t able to continue its win against the US dollar from yesterday as it receives weight from the negative consumer prices index report. Earlier today, the Statistics South Africa Head Office released the report showing that the South African consumer price index went down to 0.0% from its previous record of 0.3% and way past expectations of 0.2% on Month-over-Month basis. Meanwhile the South African consumer price index Year-over-Year declined from 4.1% to 3.7% this month, falling further below expectations of 3.9%.
The US dollar is having a tough time against the Turkish lira in sessions as news from the US-China trade conflict starts failing to support the greenback. Although both the Turkish lira and the US dollar is showing signs of exhaustion, the Turkish lira still has more fuel in its tank to take the US dollar to its support levels. Traders are worried that the US House of Senate’s new measures towards Hong Kong will hinder trade negotiations as it gains rough looks from Beijing. Recently, The United States Senate unanimously agreed on a bill that would allow a yearly review of the aid Hong Kong receives under American laws. This comes following the six months of protests and unrest in the country. Critics saw this as a good thing for the pro-democracy protesters of HK and a challenge against Beijing. This bill could also lead the US President to inflict travel restrictions and sanctions on those who will violate it, and another set of sanctions isn’t good for negotiations.
Loonie traders are cautious after the Canadian Central Bank Senior Deputy Governor Carolyn Wilkins left hints that the central bank’s doors for further easing aren’t closed. This gives the Japanese yen space to maneuver over and gain against the Canadian loonie. It is also believed that the decline in oil prices is causing the CADJPY trading pair’s fall. Nevertheless, one of the major factors is still the Wilkin’s speech wherein she said that the Bank of Canada still has space to adjust based on their current levels. Her speech sparked concerns about the possibility of rate cuts before the year ends. Although, it is worth to note that Wilkins also said that there are other options like extraordinary forward guidance and large-scale purchasing of assets. Meanwhile, the Japanese yen’s safe-haven appeal still shines as trade war hopes start to soar with the pro-democracy movements in Hong Kong taking the spotlight.
The AUDCHF pair is on gradual bullish momentum that will soon turn into a breakout and a landslide win for the Australian dollar. The tension between the US and China, with Hong Kong protests in the picture, is mainly the culprit for the pair’s ascend in the coming sessions. This is established after the People’s Bank of China slashed its official interest rates marginally by five basis points. And because the Australian dollar is the closest proxy for the Chinese yuan, it’s bound to gain support after the move. Meanwhile, last week, the Swiss National Bank board member Andrea Maechler said that the SND is still open to purchase more foreign currencies to buoy the Swiss franc and its ultra-loose monetary policy. That raises concerns that the safe-haven currency may lose its appeal soon. The Swiss franc’s weakness in sessions is due to the narrowed trade surplus in October. The franc also took a rough hit from the slowing Swiss manufacturing sector.