There has been plenty of data out over the last little bit. The dollar seems to have given up some more ground today in most FX pairs we follow. The commodity currencies have fared the best with the AUDUSD, NZDUSD and USDZAR all making gains. Solid CPI numbers in the US will give the hawks more reasons to expect an interest rate hike in December.
The EURUSD could not make any headway this morning and traded lower from our resistance zone on 1.1020 – 1.1029. Decent numbers out of the US did nothing to help the Euro’s cause and we are near session lows at 1.0975. Support is seen between 1.0950 and 1.0980.
Cable (GBPUSD) has performed well against the USD today. Good news about a trade deal with New Zealand was the initial boost and then good CPI numbers gave the market some comfort. The risks still seem to be to the downside but Sterling bulls will be pleased to have some respite. We are comfortably though our resistance zone of 1.2239 – 1.2276 and this may well become support if we can spend a little time above these levels.
The AUDUSD was on Dean’s radar this morning. He was looking for the market to run out of steam in the 0.7660 – 0.77 region. The big figure of 0.77 has been difficult to breach and we have a high today of 0.7688. Good numbers in the States has stunted the rally in the Aussie and we will see if this turns south. Support seen at 0.7596 – 0.7612.
Very similar action in the Kiwi (NZDUSD) to the AUDUSD. Dean was expecting the market to run out of steam and for the forex pair to trade lower from around 0.72. We have not seen that play out quite yet. This could be linked to the pending deal with the UK and solid Milk Price numbers out earlier.
We have seen a big pop in the USDCAD price this afternoon. A stronger dollar and weaker oil prices have moved this about 100 pips. Look for this to be on Dean’s radar if we have any pull back. His resistance is between 1.3167 and 1.3185.
The USDJPY has hovered around the 104 level all day. A few pips higher and lower. We thought we might get a push higher with good US numbers but this has not followed through as yet. The 104.40 resistance and the support of 103.80 is still very much intact.
Tomorrow morning, we have Chinese GDP and most FX traders will be watching this. Keep an eye on the commodity currencies (AUDUSD, NZDUSD and USDCAD) as they could be the most affected. A Bank of Canada rate decision in the afternoon will also be keenly observed.
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