CHINA’S IMPORT REPORT BOOSTS THE AUSSIE
The EUR/USD was consolidating today due to the lack of new drivers for movements in either direction. Trader’s risk averseness increased following Donald Trump’s speech in South Korea regarding the threat from North Korea. Even though investors are used to these kinds of comments from the US president, geopolitical tensions do stimulate interest in safe-haven assets like gold and the Japanese yen. Investors are waiting for tomorrow’s publication of the ECB economic bulletin and EU Economic forecasts.
The aussie is gaining ground today against the US dollar despite the weaker than expected gain in the Chinese trade balance surplus. The figure increased to 38.2 billion dollars for October, missing the 39.4 billion expected but still better than the 28.5 billion dollars in September. The figure that did give a boost to the markets today was the import figure of the world’s second largest economy which grew by 17.2% on an annualized basis which is 1.2% better than forecasts. The Australian dollar got a boost following the release as China is the largest buyer of Australian exports.
A key event later today will come from the Reserve bank of New Zealand’s statement on monetary policy and their interest rate decision which may trigger an increase in volatility. Also, later this evening we have the release of macro statistics in Japan. Reports on the trade balance, core machinery orders, current account balance and bank lending in Japan are due at 23:50 GMT.
The EUR/USD price rose to the upper limit of the local descending channel but was not able to break through its upper limit. As a result, quotes resumed falling within the channel and the immediate objectives in case of maintaining the current momentum will be at 1.1550 and 1.1500. On the other hand, the signal for a local trend change to positive is possible if the price overcomes resistance at 1.1620.
The AUD/USD price is approaching the inclined resistance line and breaking through it is likely to lead to continued increases up to 0.7700 and 0.7740. We should note that the amplitude of price fluctuations is reducing which may be a sign of a powerful movement coming up soon. The signal to sell with potential targets at 0.7500 and 0.7320 may follow the price fixing below 0.7635.
The USD/JPY was falling during the trading session and as a result, quotes reached the 113.50 mark. The closest target within the descending movement is likely to be 113.00. The RSI on the 15-minute chart came close to the oversold zone which points to the possibility of a rising correction soon with the potential of the price returning to 114.00 or the SMA100 on the 15-minute chart.