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Wednesday, December 7th
The Aussie fell sharply this morning in the pair with American peer as Australian economy provided the market with extremely disappointing data. The AUD/USD pair performed abrupt downslide for 60 pips refreshing its two-days lows at 0.7417 spot as Australian GDP on quarter basis missed markets expectations showing drop for 0.5% vs. expected growth of 0.3%. After yesterday’s RBA flat decision on its interest rate, investors had started to reconsider their forecast of Australian economic growth rate in better way, that turned pointless. Today traders will await for data from US labor market and weekly Crude Oil Inventories but most probably it won’t be able recover morning’s disappointment.
The EUR/USD pair is running in extremely slim range today consolidating yesterday’s decline. Seems that traders have entered alert mode ahead of ECB interest rate decision scheduled for tomorrow. Expected that ECB will extend its monetary policy easing program on its meeting due Thursday. Today most likely the major currency pair will continue to trade in a quiet mode as the US dollar has recovered smile against its major peers providing minor pressure on the euro. Later in NA session, the US economy will release US JOLTs Job openings data that will be able to set up short-term direction for the pair.
Currently the NZD/USD pair is trading flat struggling to extend its recovery from yesterday’s decline. Yesterday NZ bulls remained unimpressed by RBNZ Governor G.Wheeler’s speech where he noted that he expects that NZ inflation will reach target level by the end of this year. Moreover, correction in oil prices from its yearly highs is also limiting pair’s further recovery. Next for note remain US macro updates and weekly EIA crude stockpiles report that could provide fresh impetus on the pair.
The dollar/yen pair remains in its bullish trend for the third session in a row as dovish comments from BOJ deputy governor K.Iwata are weighing the yen. BOJ’s K.Iwata noted that the Bank remains committed to use various monetary policy tools fueling speculations of further easing measures in order to reach inflation target level of 2%. Moreover, minor recovery of the US dollar and improved risk sentiments are also positively influencing the pair. Looking ahead the pair will continue to trade in north direction amid a lack of fresh fundamentals until the NA session.
The main events of the day:
UK Manufacturing Production – 11.30 (GMT +2)
US JOLTs Job Openings – 17.00 (GMT +2)
Canadian Interest Rate Decision – 17.00 (GMT +2)
US Crude Oil Inventories – 17.30 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0646 R. 1.0820
USDJPY S. 113.22 R. 114.58
GBPUSD S. 1.2583 R. 1.2821
USDCHF S. 1.0023 R. 1.0153
AUDUSD S. 0.7406 R. 0.7510
NZDUSD S. 0.7054 R. 0.7192
USDCAD S. 1.3221 R. 1.3339
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