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Tuesday, December 6th
Having faced resistance near yesterday highs, marked in 0.75 region, the AUD/USD pair has come under renewed selling pressure stepping down to its comfort zone located near 0.7450 level. Today the Aussie was unable to benefit from RBA’s decision of keeping its interest rate unchanged as dovish statement announced after RBA’s meeting showed bank’s expectations of a slower economy growth rate in short-term perspective. Moreover, lower commodities witnessed this morning are also providing some bearish momentum to resource-linked currencies such as Australian dollar. Nothing important is scheduled for the pair in data calendar for today, so the major will keep floating under influence of global market sentiments awaiting for Australian GDP scheduled for next Asian session.
Seems that bulls are fighting hard for the control over the NZD/USD pair. Earlier the pair spiked the level of 0.71, as traders closed its longs ahead of RBA’s interest rate decision expecting higher volatility level in AUD crosses, part of which could be reflected in Kiwi’s pairs. However, the pair has managed to recover most part of its losses and now is trading back in the region of mid-0.71s amid the broadly lower greenback. However, weakness around commodities seen lately is limiting pair’s bullish momentum. Today only US secondary data would be able to provide some impetus on the pair, so expectedly it will continue to trade following global market’s sentiment.
The euro is consolidating part of its gains vs. its American counterpart after crucial Italian referendum. Seems that bulls appreciated referendum results allowing the pair to refresh its three-week highs at 1.0796 spot. Moreover, after short consolidation phase seen during Asia euro bulls have regained control over the pair driving it to its yesterday’s highs. However, growing probability that ECB will expand it QE program tomorrow will keep shared currency under pressure. Today amid data light calendar the pair will remain under influence of USD dynamics during this trading session.
The pound is remaining stronger vs. its American peer for the second week in a row extending its bullish momentum. Currently the GBP/USD pair is trading near its two-month highs marked at 1.2764 spot just a few minutes ago. The pound’s stronger position can be explained by ongoing talks over the soft “Brexit” and D.Trump’s wish to strengthen trade relations between UK and the US. In absence of any economic data from UK the pair will gain its traction from US dynamics and growing risk appetite, while the US will provide the pair with only secondary reports that won’t bring any significant moves to the FX market.
The main events of the day:
US Trade Balance – 15.30 (GMT +2)
Canadian Ivey PMI – 17.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0394 R. 1.0980
USDJPY S. 111.87 R. 115.75
GBPUSD S. 1.2577 R. 1.2819
USDCHF S. 0.9967 R. 1.0229
AUDUSD S. 0.7374 R. 0.7546
NZDUSD S. 0.7032 R. 0.7210
USDCAD S. 1.3167 R. 1.3407
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