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Wednesday, November 23rd
The Aussie is showing one of the strongest gains this Wednesday. The AUD/USD pair is still trading in bullish trend witnessed since the beginning of this week. Currently the pair is located near the region of its four-day highs marked above the level of 0.7400 despite weaker-than-expected Australian report of Construction Work Done released in Asia. The pair gained support this morning from Chinese business confidence that showed signs of improving second-largest economy that also is Australia’s biggest trading partner. Moreover, continuous risk-on rally is also landing support to the bid tone surrounding higher-yielding currencies such as the Australian Dollar.
The GBP/USD trims its Monday’s gains moving back to the 1.2400 level. The pair remains flat this morning and is trading in 15 pip corridor as the market stays cautious in anticipation of busy session coming ahead. Today Chancellor of the Exchequer P.Hammond will deliver his first and highly influencing Autumn Forecast Statement that will show first budget update under new PM T.May. Especially it should be interesting in view of Brexit process concerns. Besides, today investors will also pay attention to multiple US economic releases and much awaited FOMC minutes.
Market participants continue to buy the USD and sell the euro. The EUR/USD pair still is highly pressured as ongoing speculations over Fed’s rate-hike are broadly driving the USD dynamics in north direction. Moreover, the single currency will remain under pressure today on the back of divergence between the monetary policy of the Fed and ECB. Currently the pair is trading in a flat line around 1.0630 as market participants are refraining from making any important decision with eventful session scheduled for this Wednesday. Today traders will see bloc of flash PMI’s from Eurozone with US Durable Goods Orders, New Home Sales and FOMC Meeting Minutes released by the end of this day.
The USD/JPY is also following global market’s sentiment and is showing low volatility level keeping its trading range flat in 20 pips corridor. Moreover, seems that the yen had interrupted its post-election rally and has entered its consolidative phase staying in the 111.00 region for the third session in a row. Today the Japanese market is closed due to Labour Thanksgiving Day celebration leaving the dollar/yen pair at the mercy of USD dynamics and global risk sentiments.
The main events of the day:
German prelim. Manufacturing PMI – 10.30 (GMT +2)
EU prelim. Manufacturing PMI – 11.00 (GMT +2)
US Core Durable Goods Orders – 15.30 (GMT +2)
US New Home Sales – 17.00 (GMT +2)
US Crude Oil Inventories – 17.30 (GMT +2)
FOMC Meeting Minutes – 21.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0548 R. 1.0696
USDJPY S. 109.81 R. 112.01
GBPUSD S. 1.2309 R. 1.2567
USDCHF S. 1.0038 R. 1.0170
AUDUSD S. 0.7340 R. 0.7444
NZDUSD S. 0.7005 R. 0.7113
USDCAD S. 1.3339 R. 1.3517
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