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Wednesday, September 23rd
GBP/USD dropped significantly amid negative UK data on Tuesday, when Public Sector Net Borrowing came out at 11.31B versus 8.56 expected by analysts. September CBI Industrial Trends Orders were lower at -7. The pair opened trades at 1.5505 on Monday and by now has eased to 1.5337. The recent volatility in cable is likely to continue ahead of BoE monetary policy meetings. With GBP/USD currently at its 6-week lows, the support and resistance levels are located at 1.5182 and 1.5525, respectively.
EUR/USD continued to fall reaching 1.1126 level. The single currency has dropped ahead of Mario Draghi’s and Fed members’ speeches, as market awaits further indications on the possible divergences between policies of the two largest central banks. Meanwhile, manufacturing and services PMI are expected from euro zone, as well as Markit Composite PMI. On the US side, Manufacturing PMI and Crude Oil Inventories data is expected. The support and resistance levels are located at 1.1014 and 1.1220, respectively.
AUD/USD was weaker amid Caixin PMI falling to its 78-week lows at the reading of 47. The Chinese manufacturing survey pointed to weaker conditions than initially estimated. Meanwhile, the US dollar index was up 0.15% to its current 96.53. Overnight, the dollar continued to rise against other major currencies with no significant news coming out from the US with support provided by rate hike expectations. The pair is changing hands at 0.7034. It is likely that support will be found at 0.6985, while resistance is located at 0.7162.
USD/CHF is trading higher after Tuesday Swiss Trade Balance data coming out in red colour at 2.869B versus 2.970B forecast. As of now, the quote is 0.9759, but analysts are already holding heated discussions of the parity. Next week, the market is expecting Consumption Indicator from Switzerland, which will provide further indications on the results of SNB’s implemented monetary policy. The support is located at 0.9681, while resistance can be found at 0.9829.
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