Forex.ee: Daily economic news digest

Daily economic digest from Forex.ee
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Tuesday, October 6^th  

AUD/USD rose higher to 0.7118 as RBA held interest rates steady at 2% as expected. Earlier, Australia’s August trade deficit came in at 3.1B AUD, wider than the 2.55B expected. On the US side, we saw ISM Non-Manufacturing PMI coming out in red colour at 56.9 versus 57.5 expected. This disappointed investors while providing support to the basket of major currency pairs. The U.S. dollar was down 0.04% to 96.19. AUD/USD support and resistance levels are seen at 0.7028 and 0.7169, respectively.

USD/CAD is broadly down to 1.3083 after reaching its highest point of more than a decade at 1.3453. The loonie is now coming close to the strong support level of 1.3010, which proved to be a hard-to-pass resistance in the past. Breaking through this level, analysts might start talking of the trend reversal. The fundamental stipulators for such moves might be provided by the bureau of statistics of Canada, when it releases the Trade Balance figures and Ivey PMI number later in the day. On the upside, the resistance is seen at 1.3207.

GBP/USD continues its volatile trade, currently at 1.5153, as investors await the Manufacturing production data and interest rate decision from the UK. It is highly unlikely that interest rate is going to be changed in the nearest future, but what the market really wants to see is the ration of votes in favour of the monetary policy change. Today, the support and resistance levels are expected to be at 1.5012 and 1.5272.

EUR/USD is mildly up, located at 1.1191 before the EU Finance Ministers Meeting. In the evening, ECB President M. Draghi is out with a speech, which is likely to provide additional information on the inflation outlook. Without any significant news from the US today, the market will be closely eyeing the support and resistance levels located at 1.1066 and 1.1295, respectively.

Your European ECN-broker,

Forex.ee.