Yahoo Finance AUD/USD, NZD/USD, USD/CNY – Currencies Showing Limited Movement
AUD/USD
AUD/USD has posted slight gains on Thursday, recovering from the losses which marked Wednesday trade. In the European session, the pair is trading at 0.6896, up 0.26% on the day.
Australian Trade Balance Improves
Australia’s trade surplus widened significantly in September. The surplus came in at A$7.18 billion, up from A$5.93 billion a month earlier. The reading easily beat the estimate of A$5.10 billion. Given the ongoing U.S.-China trade war and weak global demand, this was a positive development, and AUD/USD has responded with modest gains.
Ahead – RBA Monetary Statement
The RBA will be back in the spotlight on Friday, as policymakers release the quarterly monetary policy statement. The bank held pat earlier in the week and maintained rates at 0.75%, but has slashed rates three times since May. Investors will be looking for clues with regard to future monetary policy – if the rate cut season appears over, the Aussie could respond with gains.
AUD/USD Technical Analysis
AUD/USD remains range-bound, but both support and resistance barriers remain vulnerable. Will we see a breakout before the end of the week? The pair has not been able to move past resistance at 0.6920, and is currently putting strong pressure on support at 0.6880. Below, we find support at 0.6840.
USD/CNY
USD/CNY has posted small losses on Thursday. In the European session, the pair is trading at 6.9912, down 0.08% on the day. The Chinese yuan continues to gain strength – USD/CNY has touched a low of 6.9985 on Tuesday, its lowest level since August 5.
Ahead – Chinese CPI
Chinese CPI has been pointing upwards since the first quarter of 2019 and reached 3.0% in September. The upward trend is projected to continue in October, with an estimate of 3.2%. Higher inflation levels point to increased economic activity and this is bullish for the Chinese yuan. There is a tentative release of Chinese trade balance on Friday.
USD/CNY Technical Analysis
USD/CNY continues to head lower and has declined by 1.0% since October 31. With the pair breaking below the symbolic level of 7.00 earlier in the week, I expect the downtrend to continue. The next support level is at 6.9930, which could feel pressure next week.
NZD/USD
After posting losses for three straight sessions, NZD/USD is flat in Thursday trade. In the European session, the pair is trading at 0.6367, up 0.04% on the day. There are no New Zealand events for the remainder of the week.
NZD/USD Technical Analysis
NZD/USD has moved lower this week, but has taken a breather on Thursday. In the Asian session, the pair tested support at 0.6360 for the first time since October 30. Below, there is support at 0.6330, which was last tested in mid-October. Traders should keep track of the 50-EMA, which remains very close to the pair’s current level.
This article was originally posted on FX Empire
