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พุธ, ธันวาคม 2, 2020

The German government is planning to extend the closures of restaurants and hotels until January 10th due to COVID-19, Reuters reported on Wednesday,

The German government is planning to extend the closures of restaurants and hotels until January 10th due to COVID-19, Reuters reported on Wednesday, citing sources familiar with the matter. Earlier in the day, Germany’s Health Minister Jens Spahn told reporters that they will aim to have as many different vaccines with differing effects available as soon as possible. Market reaction Germany's DAX 30 Index edged lower on this headline and was last seen losing 0.65% on a daily basis at 13,296. Meanwhile, the EUR/USD pair was virtually flat on the day at 1.2068.

Employment in the US' private sector increased by 307,000 in November, the monthly data published by the Automatic Data Processing (ADP) Research Inst

Private sector employment in US rose at a softer pace than expected in November.US Dollar Index stays below 91.50 after the data.Employment in the US' private sector increased by 307,000 in November, the monthly data published by the Automatic Data Processing (ADP) Research Institue revealed on Wednesday.  This reading followed October's increase of 404,000 (revised from 365,000) and missed the market expectation of 410,000. Commenting on the data, "while November saw employment gains, the pace continues to slow," noted Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "Job growth remained positive across all industries and sizes." Market reaction The US Dollar Index showed no immediate reaction to this report and was last seen posting small daily gains at 91.35.

EUR/USD looks to extend Tuesday’s strong advance but falters just ahead of the 1.2100 yardstick on Wednesday. The firm note in EUR/USD remains unchang

EUR/USD corrects lower following new tops just below 1.2100.Interim hurdles come in at 1.2413 and 1.2476.EUR/USD looks to extend Tuesday’s strong advance but falters just ahead of the 1.2100 yardstick on Wednesday. The firm note in EUR/USD remains unchanged and allows for the continuation of the uptrend in the near-term. That said, interim resistance levels are located at 1.2413 (April 2018 high) ahead of 1.2476 (March 2018 high). Further north is located the 2018 high in the mid-1.2500s. Looking at the broader scenario, extra gains in EUR/USD are likely while above the critical 200-day SMA, today at 1.1420. The 200-week SMA at 1.1436 also reinforces this view. EUR/USD daily chart  

United States ADP Employment Change below expectations (410K) in November: Actual (307K)

The bearish momentum surrounding the greenback remains unchanged in spite of the ongoing rebound from earlier 30-month lows around 91.10. The dollar’s

DXY drops and records new yearly lows just above 91.00.Bets for a deeper pullback remain well on the rise.The bearish momentum surrounding the greenback remains unchanged in spite of the ongoing rebound from earlier 30-month lows around 91.10. The dollar’s selling pressure is expected to mitigate somewhat above 92.80 (high November 23), although further losses keep targeting the psychological support in the 90.00 yardstick ahead of the April 2018 lows near 89.20. In the meantime, as long as DXY trades below the 200-day SMA, today at 95.91, the offered stance is forecast to persist. DXY daily chart  

EUR/JPY adds to the recent strong advance and breaks above the key resistance around 126.00 following Tuesday’s breakout of another important hurdle i

EUR/JPY surpassed the key barriers at 125.00 and 126.00.Further upside now targets the YTD highs around 127.00.EUR/JPY adds to the recent strong advance and breaks above the key resistance around 126.00 following Tuesday’s breakout of another important hurdle in the 125.00 neighbourhood. If the buying pressure manages to gather further traction, then the 2020 peaks in the 127.00 zone (September 1) should return to the investors’ radar. Some correction, however, could be shaping up as the cross flirts with the overbought territory. Looking at the broader picture, while above the 200-day SMA at 121.56 the outlook should remain constructive. The October’s low around 121.60 also reinforces this key contention zone. EUR/JPY daily chart  

While testifying before the US Senate Committee on Banking, Housing, and Urban Affairs on Tuesday, US Treasury Secretary Mnuchin said ht is looking fo

While testifying before the US Senate Committee on Banking, Housing, and Urban Affairs on Tuesday, US Treasury Secretary Mnuchin said ht is looking forward to reviewing the bipartisan COVID aid proposal. Earlier in the week, a bipartisan group of US senators proposed a $908 billion relief bill that includes direct payments to local and state governments. Additionally, senators asked for an additional fund of $228 billion under the Paycheck Protection Program (PPP) for hotels, restaurants and other small businesses.  Mnuchin noted that restaurants need grants rather than loans and added that he supports legislation to help PPP forgiveness. S&P 500 looks to open in the negative territory On Tuesday, the S&P 500 Index (SPX) gained more than 1% and closed at an all-time high of 3,678. However, the market mood seems to have turned cautious on Wednesday and the S&P 500 Futures are currently down 0.33% on the day, suggesting that the SPX will start the day in the red.

Gold has been extending its gains, marching forward as hopes for fiscal stimulus have returned. A bipartisan group of Senators unveiled a $908 billion

Gold has been extending its gains, marching forward as hopes for fiscal stimulus have returned. A bipartisan group of Senators unveiled a $908 billion program – that could be the beginning according to both Democrats and Republicans. The precious metal is benefiting from the speculation of more funds flowing to markets.  How is XAU/USD positioned on the charts? The path of least resistance remains to the upside.  The Technical Confluences Indicator is showing that significant support awaits at $1,813, which is the convergence of the all-important Fibonacci 23.6% one-month and the Fibonacci 38.2% one-week.  Looking up, soft resistance is at $1,825, which is a juncture of lines including the Bollinger Band 15min-Middle, the Simple Moving Average 5-1h, and the SMA 10-one-day.  A more substantial cap awaits at $1,836, which is the confluence of the Bollinger Band 15min-Upper and the Fibonacci 61.8% one-week.  Further above, $1,842 is the upside target, where the Fibonacci 38.2% one-month and the Pivot Point one-day Resistance 2.  Key XAU/USD resistances and supports Confluence Detector The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies. Learn more about Technical Confluence

British Prime Minister Boris Johnson said on Wednesday that it's important that people do not get their hopes up too soon about the speed of the coron

British Prime Minister Boris Johnson said on Wednesday that it's important that people do not get their hopes up too soon about the speed of the coronavirus vaccine rollout, as reported by Reuters. Additional takeaways "Vaccine is by no means the end of the struggle against the virus." "There are logistical challenges to get the vaccine to those who need it." "Important we get AstraZeneca vaccine too." Market reaction The UK's FTSE 100 Index remains in the positive territory despite these comments and was last seen gaining 0.37% on the day at 6,408.

BioNTech's Chief Medical Officer announced on Wednesday that they have started the process of delivering the coronavirus vaccine that they have develo

BioNTech's Chief Medical Officer announced on Wednesday that they have started the process of delivering the coronavirus vaccine that they have developed with Pfizer, per Reuters. Additional takeaways "We expect the roll-out of the vaccine in the UK in the next couple of days." "We have filed for conditional marketing authorisation with the European Medicines Agency (EMA)." "Decision of the US Food and Drug Administration (FDA) and EMA expected in mid-December." "In discussions with additional countries over supply contracts." "Will ship doses in temperature controlled boxes to the UK by ferry or plane." "Vaccine can last for 5 days in a fridge but only 6 hours while transporting to care homes at 2-8 degrees." "We will distribute as many doses as we can as quickly as we can to jurisdictions that approve the vaccine." Market reaction These comments don't seem to be having a significant impact on market sentiment. As of writing, the S&P 500 Futures were down 0.2% on a daily basis at 3,653.

The recent price action in the precious metal hints at the idea that a strong contention area could have emerged around $1,760 per ounce, suggested Ka

The recent price action in the precious metal hints at the idea that a strong contention area could have emerged around $1,760 per ounce, suggested Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank. Key Quotes “Gold has sold off to, tested and reversed from the 1760/1765.61 May high and 50% retracement. We view the market as having based here, but note that this support is further reinforced by the 1733.26 55 week ma.” “Rallies will find initial resistance at 1850 (the November low), just to alleviate immediate downside pressure. This guards the 55 day ma at 1910.90 and the mid-September high at 1973.8, for a rally to the 78.6% retracement at 2025 which guards the target band of 2070/2088. This is a combination of Fibonacci extensions and Elliott wave counts.” “Below the 55 week ma (not favoured) would introduce scope to the 1670.49 June low.”

Brazil Industrial Output (YoY) came in at 0.3%, below expectations (1%) in October

Brazil Industrial Output (MoM) below expectations (1.4%) in October: Actual (1.1%)

United States MBA Mortgage Applications declined to -0.6% in November 27 from previous 3.9%

The European Union's chief Brexit negotiator, Michel Barnier, was neither pessimistic nor optimistic on prospects of a deal with the UK while updating

The European Union's chief Brexit negotiator, Michel Barnier, was neither pessimistic nor optimistic on prospects of a deal with the UK while updating EU member states, Reuters reported on Wednesday, citing an EU diplomat. "Barnier implied that they were getting closer to a deal but not at a huge rate of knots," the diplomat further noted.  According to Reuters, member states still believe there is "still important stuff to play for" and they have not discussed the idea of a short no-deal period if the December 31 deadline is missed. Market reaction The British pound struggles to find demand following this report. As of writing, the GBP/USD pair was down 0.52% on the day at 1.3345.

The USD/CAD pair lost 70 pips on Tuesday and extended its slide during the Asian trading hours on Wednesday to touch its lowest level in two years at

USD/CAD reversed its direction after renewing two-year lows. WTI pared early gains and turned red below $44.50 ahead of EIA data.US Dollar Index posts small gains following Tuesday's sharp decline.The USD/CAD pair lost 70 pips on Tuesday and extended its slide during the Asian trading hours on Wednesday to touch its lowest level in two years at 1.2914. Ahead of the American session, the pair started to erase its losses and was last seen gaining 0.12% on the day at 1.2947. CAD weakens as WTI remains on the back foot  The heavy selling pressure surrounding the USD caused USD/CAD to remain bearish since the beginning of the week. The risk-positive market environment weighed on the US Dollar Index (DXY) and dragged it to a fresh 31-month low of 91.10. However, the poor performance of major European equity indexes and the 0.25% decline witnessed in the S&P 500 Futures seem to be helping the greenback stay resilient against its peers. At the moment, the DXY is up 0.13% at 91.43. Meanwhile, the commodity-sensitive loonie is struggling to find demand amid falling crude oil prices. The barrel of West Texas Intermediate (WTI) is down 0.4% on the day at $44.20 as investors await clarity on the output strategy of OPEC+ in 2021. Later in the day, the ADP will release the November Employment Change data for the US alongside the ISM NY's Business Conditions Index. The Canadian economic docket will feature the third-quarter Labor Productivity report. Technical levels to watch for  

India M3 Money Supply rose from previous 12% to 12.5% in November 20

The AUD/USD pair built on Tuesday's gains and rose to a daily high of 0.7393 during the Asian trading hours. However, with the cautious market mood al

AUD/USD lost its traction after rising toward 0.7400 on Wednesday.Australian economy grew at a stronger pace than expected in Q3.US Dollar Index rebounds toward 91.50 ahead of mid-tier data.The AUD/USD pair built on Tuesday's gains and rose to a daily high of 0.7393 during the Asian trading hours. However, with the cautious market mood allowing the USD to start gathering strength against its rivals, the pair turned south and was last seen trading with small gains at 0.7373. AUD fails to capitalize on upbeat GDP data The data published by the Australian Bureau of Statistics showed on Wednesday that the real Gross Domestic Product (GDP) in the third quarter expanded by 3.3% on a quarterly basis. This reading followed the 7.7% contraction recorded in the second quarter and beat the market expectation of 2.6%. Nevertheless, the positive impact of this report on the AUD remained short-lived.  On the other hand, Wall Street's record-setting rally on Tuesday caused the greenback to suffer heavy losses against its risk-sensitive rivals. The US Dollar Index (DXY) slumped to its lowest level since April 2018 at 91.10 but staged a technical correction during the European trading hours. Ahead of the ADP Employment Change and the ISM NY Business Conditions Index data from the US, the DXY is up 0.1% on the day at 91.41.  In the meantime, the S&P 500 Futures are posting modest losses, suggesting that AUD/USD could find it hard to gather bullish momentum in the second half of the day if risk flows struggle to retake the control of financial markets. Technical levels to watch for  

Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes AUD/USD risks a probable correction lower in the near-term. Key Quotes “

Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, notes AUD/USD risks a probable correction lower in the near-term. Key Quotes “AUD/USD continues to falter on its initial test of the .7413 September high, there is some divergence of the daily RSI and we would allow for a near term pullback. We also have a 13 count on the 240 minute chart AND TD resistance at .7410/20. This suggests we may well hold the initial test of the early September peak at .7413 and we are alert to some profit taking there. It guards the long term Fibonacci retracements at .7574 and .7639.” “Initial support is offered by .7255, the November 19 low, and the 55 day moving average at .7198.”

Economist at UOB Group Lee Sue Ann reviewed the latest RBA meeting (December 1). Key Quotes “The Reserve Bank of Australia (RBA), at its final monetar

Economist at UOB Group Lee Sue Ann reviewed the latest RBA meeting (December 1). Key Quotes “The Reserve Bank of Australia (RBA), at its final monetary policy meeting of the year, decided to retain the current policy settings, including the targets of 10 basis points for the cash rate and the yield on 3-year Australian Government bonds, as well as the parameters of the Term Funding Facility and the government bond purchase program.” “Our view remains for the RBA to hold off (for now) in regards to bringing the policy rate into negative territory. If the need for more easing arises, more Quantitative Easing (QE) and yield curve control are likely to follow first. We also see fiscal policy continuing to play a key role in stimulating the economy and expect that the government will need to do more.”

Following earlier new 2020 highs in the 1.2090 region, sellers appears to have stepped in and motivate EUR/USD to correct lower to the mid-1.2000s on

EUR/USD clinches fresh 2020 highs near 1.2090 on Wednesday.Fresh vaccines news bolsters the risk-on trade early in Europe.German Retail Sales expanded 2.6% MoM in October.Following earlier new 2020 highs in the 1.2090 region, sellers appears to have stepped in and motivate EUR/USD to correct lower to the mid-1.2000s on Wednesday. EUR/USD propped up by risk appetite EUR/USD posted the largest single day gain since March on Tuesday, advancing around 1.20% and extending the march north well past the psychological 1.20 hurdle. Earlier on Wednesday, EUR/USD reached fresh 2020 highs in levels just shy of 1.2100 the figure, area last seen in April 2018. As usual in past weeks, the single currency met extra support from increasing investors’ appetite for riskier assets, in turn sustained by fresh US stimulus rumours and vaccine news. In addition, Tuesday’s performance in EUR futures markets left the door open for the continuation of the uptrend, at least in the very near-term.  Earlier in the calendar, the German Retail Sales expanded at a monthly 2.6% in October, surpassing expectations. In the broader Euroland, Producer Prices rose 0.4% MoM during the same period and the unemployment rate ticked lower to 8.4%. In the US data space, the November’s ADP report is due seconded by weekly MBA’s Mortgage Applications, the EIA’s report on crude oil stockpiles, the Fed’s Beige Book and the second testimony by Chief Powell, this time before the Committee on Financial Services at the House of Representatives. In addition, FOMC’s members R.Quarles, J.Williams and P.Harker are all due to speak later in the session. What to look for around EUR EUR/USD advanced to new YTD peaks around 1.2090 on Wednesday, leaving the door open to a potential test of the 1.2100 mark in the short-term horizon, always against the backdrop of a favourable atmosphere in the risk complex. In the very near-term, EUR/USD appears supported by prospects of a strong recovery in the region along with the increasing likelihood of extra stimulus in the US. Risks to this positive view emerge from the potential political effervescence around the EU Recovery Fund and increasing chances of further ECB easing to be announced as soon as at the December meeting. EUR/USD levels to watch At the moment, the pair is gaining 0.12% at 1.2053 and a break above 1.2087 (2020 high Dec.2) would target 1.2413 (monthly high Apr.17 2018) en route to 1.2476 (monthly high Mar.27 2018). On the flip side, immediate contention emerges at 1.1920 (high Nov.9) seconded by 1.1800 (low Nov.23) and finally 1.1745 (weekly low Nov.11).

The NZD/USD pair climbed to its highest level since May 2018 at 0.7085 on Wednesday but seems to have gone into a consolidation phase ahead of mid-tie

NZD/USD touched its highest level since May 2018 at 0.7085.US Dollar Index recovers modestly, stays below 91.50.Investors await mid-tier macroeconomic data releases from the US.The NZD/USD pair climbed to its highest level since May 2018 at 0.7085 on Wednesday but seems to have gone into a consolidation phase ahead of mid-tier macroeconomic data releases. As of writing, the pair was virtually unchanged on the day at 0.7063. DXY finds support before testing 91.00 The broad-based selling pressure surrounding the greenback since the start of the week provided a boost to NZD/USD. The risk-on market environment, as reflected by surging equity indexes in the US, made it difficult for the USD to find demand. The US Dollar Index (DXY) slumped to its lowest level in 30 months at 91.10 on Wednesday and staged a technical rebound. At the moment, the DXY is up 0.05% on the day at 91.36. Earlier in the day, Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr said that they are focused on being operationally ready to implement negative rates if necessary and kept kiwi's upside limited. Later in the session, the ADP Employment Change and the ISM-NY Business Conditions Index will be featured in the US economic docket. Meanwhile, the S&P 500 Futures are down 0.2% on the day, suggesting that the DXY could edge higher in the second half of the day if Wall Street's main indexes push lower. Technical levels to watch for  

The seasonally-adjusted Unemployment Rate in the euro area ticked down to 8.4% in October from 8.5% in September, the data published by the Eurostat s

Unemployment Rate in the euro area declined modestly in October.EUR/USD trades with small losses above 1.2050 after the data.The seasonally-adjusted Unemployment Rate in the euro area ticked down to 8.4% in October from 8.5% in September, the data published by the Eurostat showed on Wednesday. This reading came in line with analysts' estimates. "The EU unemployment rate was 7.6% in October 2020, stable compared with September 2020 and up from 6.6% in October 2019," the publication further read.  Market reaction This report doesn't seem to be having an impact on the shared currency's performance against its peers. As of writing, the EUR/USD pair was down 0.1% on a daily basis at 1.2058.

European Monetary Union Unemployment Rate in line with expectations (8.4%) in October

European Monetary Union Producer Price Index (MoM) came in at 0.4%, above expectations (0.2%) in October

European Monetary Union Producer Price Index (YoY) above forecasts (-2.4%) in October: Actual (-2%)

“Some member states are becoming jittery as we enter Brexit endgame,” Reuters reports, citing a European Union (EU) diplomat. more to come ...

“Some member states are becoming jittery as we enter Brexit endgame,” Reuters reports, citing a European Union (EU) diplomat.   more to come ...

USD/CAD comes under fresh selling pressure and renews two-year lows near 1.2915, having stalled the rebound just below the 1.2950 level. The major wit

USD/CAD sellers return, looks to threaten 1.2900. US dollar rebound fails to rescue the USD/CAD bulls.Bounce in WTI prices weighs further on the spot. USD/CAD comes under fresh selling pressure and renews two-year lows near 1.2915, having stalled the rebound just below the 1.2950 level. The major witnessed good two-way businesses so far this Wednesday, closely following the US dollar price action amid a cautious market mood. USD/CAD’s rebound lost steam in the last hour, as WTI jumped back on the bids above the $44 mark, thanks to the latest Pfizer vaccine approval news from the UK. The fresh bid caught by the US oil offered fresh impetus to the CAD bulls.     Moreover, the pullback in the US dollar from two-and-a-year lows also seems to have faltered, exerting fresh selling pressure on the major. The US dollar index eased off daily highs of 91.42, trading at 91.34, as of writing. In the session ahead, the pair will take cues from the US ADP jobs report and sentiment on Wall Street, with fresh updates on the US fiscal stimulus awaited. The weekly US crude stocks data will be also eyed for any oil price action-led impact on the Loonie. USD/CAD technical levels  

Italy Unemployment registered at 9.8%, below expectations (9.9%) in October

In light of the recent price action, Cable is expected to face an important resistance in the 1.3500/1.3515 band, in opinion of Karen Jones, Team Head

In light of the recent price action, Cable is expected to face an important resistance in the 1.3500/1.3515 band, in opinion of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank. Key Quotes “GBP/USD has started to erode the 1.3418 multi-year downtrend and now faces the 1.3500/1.3515 December 2019 high. This is a long term pivot and both levels represent major resistance.” “Nearby support is offered by the 55 day moving average at 1.3058 and also by 1.3003, the 5 month uptrend and for now, while above here the market remains bid.”

FX Strategists at UOB Group note USD/CNH could drop further on a breach of the 6.5319 level in the next weeks. Key Quotes 24-hour view: “After trading

FX Strategists at UOB Group note USD/CNH could drop further on a breach of the 6.5319 level in the next weeks. Key Quotes 24-hour view: “After trading in quiet manner for several days, the sudden sharp sell-off in USD came as a surprise. Strong downward momentum suggests further USD weakness is likely even though the year-to-date low of 6.5319 could be just out of reach. Resistance is at 6.5580 followed by 6.5730.” Next 1-3 weeks: “We have held the same view for a week wherein USD ‘is in a consolidation and could trade between 6.5400 and 6.6200 for a period of time’. USD weakened sharply yesterday (01 Dec) and is approaching the bottom of the range at 6.5400. Downward momentum is beginning to improve but is not strong for now. USD has to stage a NY closing below the year-to-date low of 6.5319 in order to indicate that the next down-leg towards 6.4960 has started. The prospect for such a move is not high for now but it would increase as long a USD does move above 6.5800 within these few days.”

The greenback, when measured by the US Dollar Index (DXY), manages to gather some traction after recording new yearly lows around the 91.10 level, are

DXY remains under pressure and looks to 91.00.The dollar drops to 2020 lows in the 91.10 region.US ADP report, Powell, Beige Book next of note in the docket.The greenback, when measured by the US Dollar Index (DXY), manages to gather some traction after recording new yearly lows around the 91.10 level, area last visited in April 2018. US Dollar Index depressed, looks to data, Powell After bottoming out in the 91.10 area, or fresh 2020 lows, the index manages to regain some buying interest and now returns to the 91.30/40 band during the European morning on Wednesday. In the meantime, the dollar continues to suffer the upbeat sentiment in the risk-associated complex on the back of rising optimism of potential coronavirus vaccines expected to be delivered in the next months. Later in the session, the November’s ADP report is due seconded by weekly MBA’s Mortgage Applications, the EIA’s report on crude oil stockpiles, the Fed’s Beige Book and the second testimony by Chief Powell, this time before the Committee on Financial Services at the House of Representatives. In addition, FOMC’s R.Quarles (permanent voter, centrist), NY Fed J.Williams (permanent voter, centrist) and Philly Fed P.Harker (voter, hawkish) are all due to speak later in the session. What to look for around USD The bearish stance does not abandon the dollar and dragged DXY to new yearly lows around 91.10 on Wednesday. The better mood in the risk complex remains bolstered by a clearer US political scenario in combination with auspicious vaccine news and better growth prospects. Furthermore, hopes of extra fiscal stimulus have re-emerged and along with the “lower for longer” stance from the Federal Reserve is seen keeping the buck under extra pressure for the time being. US Dollar Index relevant levels At the moment, the index is up 0.04% at 91.33 and a breakout of 92.80 (weekly high Nov.23) would open the door to 93.20 (weekly high Nov.11) and finally 93.24 (100-day SMA). On the other hand, the next support is located at 91.10 (2020 low Dec.2) followed by 89.22 (monthly low Apr. 2018) and then 88.94 (monthly low March 2018).

Gold’s recovery from five-month lows of $1765 gains further traction on Wednesday, as the bulls gear up for a test of the earlier critical support now

Gold extends recovery for the second straight session. Bull pennant breakout confirmed on the hourly chart. Hourly RSI peeps into the overbought territory. Gold’s recovery from five-month lows of $1765 gains further traction on Wednesday, as the bulls gear up for a test of the earlier critical support now resistance at $1850. The technical set up favors the bulls, as the price confirmed a bull pennant breakout on the hourly chart in the last hour. The validation came in after the metal gave an hourly closing above the falling trendline resistance at $1815. The price pierced above the 200-hourly moving average (HMA) at $1819, which offered extra zest to the XAU bulls. developing story ... Gold Price Chart: Hourly

Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, suggests EUR/USD could now target the 1.2145 level. Key Quotes “EUR/USD has cl

Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, suggests EUR/USD could now target the 1.2145 level. Key Quotes “EUR/USD has cleared the 1.2014 August peak, such a move targets initially 1.2145, the 78.6% retracement and longer term 1.2622, the 200 month moving average. We note the 13 count on the 60 minute chart and will attempt to buy the dips Dips should find initial support at 1.1906 and good nearby support at the 1.1800/1.1797November 23 low and the 55 day ma. EUR/USD will remain bid while above the six month support line at 1.1735.”

Spain Unemployment Change dipped from previous 49.6K to 25.3K in November

GBP/USD falling below 1.3370, more to come

GBP/USD falling below 1.3370, more to come

Brazil Fipe's IPC Inflation dipped from previous 1.19% to 1.03% in November

In opinion of FX Strategists at UOB Group, USD/JPY still struggles for direction within the 103.70-104.80 range in the next weeks. Key Quotes 24-hour

In opinion of FX Strategists at UOB Group, USD/JPY still struggles for direction within the 103.70-104.80 range in the next weeks. Key Quotes 24-hour view: “USD traded between 104.17 and 104.57 yesterday (higher than our expected range of 104.00/104.50) before closing little changed at 104.30. The price actions offer no fresh clues and USD could continue to trade sideways for now, likely within a 104.10/104.60 range.” Next 1-3 weeks: “The recent build-up in downward momentum fizzled out as USD popped above our ‘strong resistance’ level of 104.50 yesterday (high of 104.57). The outlook is mixed now and USD could trade sideways and only a clear break below 103.70 or above 103.80 would indicate the start of a more directional price action.”

Here is what you need to know on Wednesday, December 2: The US dollar is marginally bouncing as President-elect Joe Biden wants to keep tariffs on Chi

Here is what you need to know on Wednesday, December 2: The US dollar is marginally bouncing as President-elect Joe Biden wants to keep tariffs on China unchanged at first. The UK's approval of a coronavirus vaccine helps sustain an upbeat mood. ADP's jobs figures, Fed Chair Powell's testimony, fiscal stimulus, and Brexit are all eyed. Vaccine: The UK is the first Western country to approve a COVID-19 vaccine, giving the green light to the Pfizer/BioNTech jab, which could be administered as early as next week. The news boosts the market mood.Sino-American relations: President-elect Joe Biden told the New York Times that he will first conduct a full review and consult allies before removing any tariffs on China. These headlines somewhat weighed on the market mood and allowed the dollar to stabilize. Fiscal stimulus: A bipartisan group of US Senators unveiled a package worth $908 billion. It is unclear if outgoing President Donald Trump and other politicians back the accord. Monetary stimulus: Jerome Powell, Chairman of the Federal Reserve, refrained from hinting about expanding the bank's bond-buying scheme in its upcoming decision, but only committed to providing support. He continues testifying on Wednesday. EUR/USD rallied on Tuesday, hitting the highest since May 2018. The mix of political certainty, a divergence in reactions to monetary stimulus, and vaccine hopes triggered the breakout.  See EUR/USD Forecast: Three reasons for the massive breakout and big levels to watch The US ISM Manufacturing Purchasing Managers' Index marginally missed expectations with 57.5 points while the employment component dropped below 50, indicating contraction. The ADP jobs report is due out on Wednesday and provides another clue toward Friday's Nonfarm Payrolls.  See ADP Jobs Preview: Even a minimal beat could trigger a greenback comebackBrexit talks continue in full force but the EU denies they have "entered a tunnel" – a term that refers to off-the-radar intense talks are en route to an accord. GBP/USD jumped above 1.34 in hopes for a breakthrough and is holding above that level.AUD/USD is trading closer to 0.74 amid US dollar weakness and upbeat Gross Domestic Product figures from Australia. The economy grew by 3.3% in the third quarter, better than expected.Gold has recaptured the $1,800 on Tuesday amid stimulus hopes. Oil prices continue spilling lower as OPEC+ ministers have yet to reach a deal on output cuts. WTI is changing hands at around $44. Cryptocurrencies remain highly volatile. Bitcoin is trading below $19,000 after nearing the round $20,000 level on Tuesday.  More US Manufacturing Slows in November: New business remains strong

Switzerland Consumer Price Index (YoY) came in at -0.7% below forecasts (-0.5%) in November

According to advanced figures for Natural Gas futures markets, open interest extended the recent erratic performance and went up by nearly 9.2K contra

According to advanced figures for Natural Gas futures markets, open interest extended the recent erratic performance and went up by nearly 9.2K contracts on Tuesday. On the other hand, volume partially reversed the previous build and dropped by nearly 37K contracts. Natural Gas looks capped around $3.00/MMBtu Tuesday’s drop in prices of Natural Gas was amidst rising open interest, indicative that further retracements could be in the pipeline in the very near-term. Against this, another visit to the November’s low near $2.50 per MMBtu still remains on the cards.

Switzerland Consumer Price Index (MoM) came in at -0.2% below forecasts (-0.1%) in November

The US Food and Drug Administration (FDA) and EU’s European Medicines Agency (EMA) decisions on the coronavirus vaccines authorization expected this m

The US Food and Drug Administration (FDA) and EU’s European Medicines Agency (EMA) decisions on the coronavirus vaccines authorization expected this month as well, Pfizer Inc said in a briefing on Wednesday. The statement came after the UK’s Medicines and Healthcare Products Regulatory Agency (MHRA), a medical regulator, authorized the emergency-use supply for its covid vaccine.

AUD/USD trades better in early Europe, consolidating the rally to two-day highs of 0.7391, reached in response to broad-based US dollar sell-off and u

AUD/USD bulls brace for another leg higher. Bullish crossover confirmed on the 1H chart. Bullish hourly RSI and Aussie Q# GDP beat support. AUD/USD trades better in early Europe, consolidating the rally to two-day highs of 0.7391, reached in response to broad-based US dollar sell-off and upbeat Australian Q3 GDP. Australia's economy expanded by 3.3% in Q3, rebounding from its first recession in nearly three decades induced by the pandemic-related shocks. The price spotted a bullish crossover on the hourly sticks in the last hour, with the 21-hourly moving average (HMA) crossing above the 50-HMA. The bullish formation points to the additional upside in the major. The hourly Relative Strength Index (RSI) points higher above the midline, currently at 54.01, backing the upbeat momentum. Therefore, a retest of the 0.7400 level is likely on the cards. The next relevant upside target is seen at $0.7437, multi-month tops. On the flipside, an immediate downside remains cushioned by the 50-HMA at 0.7365. Selling pressure could intensify below the latter, exposing the horizontal 200-HMA at 0.7348. AUD/USD: Hourly chart AUD/USD: Additional levels  

A breakdown of 0.7330 would indicate that the positive phase in AUD/USD could be over, in opinion of FX Strategists at UOB Group. Key Quotes 24-hour v

A breakdown of 0.7330 would indicate that the positive phase in AUD/USD could be over, in opinion of FX Strategists at UOB Group. Key Quotes 24-hour view: “Yesterday, we held the view that ‘there is room for AUD to test 0.7330 first before the current weakness should stabilize’. However, AUD rebounded after touching a low of 0.7339. Upward momentum is beginning to pick-up, albeit tentatively for now. From here, AUD could move higher but in view of the less than robust momentum, AUD is unlikely to break the year-to-date high at 0.7413 (minor resistance is at 0.7400). Support is at 0.7350 followed by the still rather strong support of 0.7330.” Next 1-3 weeks: “We highlighted yesterday that a break of 0.7413 would shift the focus to 0.7455. However, AUD retreated quickly from high of 0.7408. Upward momentum has been dented and a break of 0.7330 (no change in ‘strong support’ level) would indicate that the positive phase that started in mid-November (see annotations in the chart below) has run its course. Barring a sudden surge above 0.7413 within these 1 to 2 days, a break of 0.7330 would not be surprising.”

CME Group’s flash data for crude oil futures markets noted traders extended the uptrend in open interest for yet another session on Tuesday, although

CME Group’s flash data for crude oil futures markets noted traders extended the uptrend in open interest for yet another session on Tuesday, although now by just 921 contracts. Volume, instead, diminished by nearly 64K contracts, partially reversing the previous build. WTI looks supported around $43.00 The leg lower in prices of the WTI could be running out of steam amidst a small increase in open interest. That said, another downtick should not be ruled out yet, but the $43.00 mark is expected to offer decent contention in the very near-term.

The Medicines and Healthcare Products Regulatory Agency (MHRA), the UK’s medical regulator, gave a green signal to the coronavirus vaccine co-develop

 The Medicines and Healthcare Products Regulatory Agency (MHRA), the UK’s medical regulator, gave a green signal to the coronavirus vaccine co-developed by BioNTech SE and Pfizer Inc on Wednesday, concluding it’s both safe and effective. The vaccine will be available in the UK from next week.   more to come ...

The upside momentum in Cable could push the pair to another potential visit of the yearly highs near the 1.3500 level (September 1). Key Quotes 24-hou

The upside momentum in Cable could push the pair to another potential visit of the yearly highs near the 1.3500 level (September 1). Key Quotes 24-hour view: “Our expectation for GBP to trade within a 1.3300/1.3400 range was wrong as it finally cracked 1.3400 and leapt to a high of 1.3442. While conditions are overbought, there is no sign of weakness just. GBP could strengthen further even though overbought conditions suggest a sustained rise above the year-to-date high of 1.3481 is unlikely (next resistance is at 1.3515). Support is at 1.3390 followed by 1.3365.”   Next 1-3 weeks: “We have held a positive view in GBP since mid-November. After GBP failed to break 1.3400 on a few attempts, we indicated yesterday (01 Dec, spot at 1.3325) that ‘in order to rejuvenate the flagging momentum, GBP has to move and stay above 1.3365 within these 1 to 2 days or a break of 1.3280 would not be surprising and would indicate that the positive phase in GBP has run its course’. GBP finally blast past 1.3400 during NY hours and surged to a high of 1.3442. From here, all eyes are on the year-to-date high of 1.3481. This solid resistance is followed closely by 1.3516, the peak back in 2019. All in, further GBP strength is likely as long as it does not move below 1.3330 (‘strong support’ level previously at 1.3280).”

Germany Retail Sales (YoY) above forecasts (5.9%) in October: Actual (8.2%)

Germany Retail Sales (MoM) came in at 2.6%, above expectations (1.2%) in October

Norway Current Account fell from previous 20.48B to 9.91B in 3Q

Open interest in gold futures markets shrunk for the second session in a row on Tuesday, this time by almost 3.7K contracts in light of preliminary re

Open interest in gold futures markets shrunk for the second session in a row on Tuesday, this time by almost 3.7K contracts in light of preliminary readings from CME Group. In the same line, volume went down for the second straight session, now by around 39.2K contracts. Gold regained the $1,800 mark Tuesday’s uptick in gold prices was accompanied by shrinking open interest and volume, hinting at the view that extra gains appear somewhat contained in the very near-term. That said, another visit to Tuesday’s multi-month lows near $1,775 peer ounce should not be ruled out.

The Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr said that they are focused on being operationally ready to implement negative rates if nece

The Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr said that they are focused on being operationally ready to implement negative rates if necessary, in his scheduled speech on Wednesday. Further comments Fiscal and monetary policy must work hand-in-hand. There will always be trade-offs when implementing monetary policy. Economic risks still skewed to the downside. Monetary policy objectives have not changed. Rising house prices have increased perceived wealth. RBNZ takes asset prices into consideration when assessing policy decisions. New policy tools will become mainstream. Actual use will depend on economic context at the time, and relative efficiency. Market reaction The kiwi dollar was little changed on Orr’s comments, as NZD/USD kept its range around 0.7065, posting small gains on the day.

UOB Group’s FX Strategists noted EUR/USD could now attempt to visit the 1.2200 level in the next weeks. Key Quotes 24-hour view: “Our expectation for

UOB Group’s FX Strategists noted EUR/USD could now attempt to visit the 1.2200 level in the next weeks. Key Quotes 24-hour view: “Our expectation for EUR to consolidate was wrong as it staged a sudden and sharp rally and cracked the major resistance at 1.2011 (high in Sep). The breach of the key resistance resulted in rapid surge to a high of 1.2076. While the sharp rally is overbought, robust momentum suggests further EUR strength is likely. The next resistance is at 1.2100 followed by 1.2130. On the downside, the ‘break-out’ level near 1.2010 is acting as a solid support now (minor support is at 1.2035).” Next 1-3 weeks: ”After EUR failed to break the key 1.2011 level and retreated sharply from high of 1.2003, we indicated yesterday (01 Dec, spot at 1.1935) that ‘odds for further EUR strength have diminished unless EUR can move and stay above 1.1980 within these 1 to 2 days’. That said, we did quite expect the manner by which EUR turned around, blast past 1.2011 and rocketed to a high of 1.2076, Note that EUR closed up by a whopping +1.19% (1.2070), its biggest 1-day gain since March. The clear break-out indicates that EUR has moved into its next up-leg. Further EUR strength is likely especially when there are few resistance levels of note. From here, the level to focus on is at 1.2200. On the downside, the ‘strong support’ has moved higher to 1.1950 from the previous level of 1.1900. On a shorter-term note, the ‘break-out’ level near 1.2010 is already a solid support.”

In the view of Carsten Fritsch, Precious Metals Analyst at Commerzbank, outflows in the gold-backed exchange-traded funds (ETFs) in November was the m

In the view of Carsten Fritsch, Precious Metals Analyst at Commerzbank, outflows in the gold-backed exchange-traded funds (ETFs) in November was the main driver behind the metal’s fall. Key quotes “The gold market saw continued selling pressure last month as investor sentiment was boosted by news of three potential vaccines for the COVID-19 virus.” “Gold-backed exchange-traded funds (ETFs) have been the key driver behind gold's disappointing price action.”  "Recently, outflows were registered on 14 out of 16 days of trading. Yesterday saw a further twelve tons of outflows. ETF investors have thus become a negative factor for the gold price after their purchases had previously driven up the price between April and August," "News from India offers a glimmer of hope. Gold demand there apparently picked up noticeably last week on the back of lower prices. A revival of physical demand in Asia would make an important contribution to stabilizing the gold price. And in turn, it would need to stabilize to restore the badly-shaken confidence of ETF investors in gold." Related readsGold Price Analysis: XAU/USD’s acceptance above $1815 strong cap is critical for further recovery – Confluence DetectorDollar hovers near 2-1/2 low as traders eye US stimulus talks

FX option expiries for Dec 2 NY cut at 10:00 Eastern Time, via DTCC, can be found below. - GBP/USD: GBP amounts 1.3300 600m - USD/JPY: USD amounts 104

FX option expiries for Dec 2 NY cut at 10:00 Eastern Time, via DTCC, can be found below. - GBP/USD: GBP amounts         1.3300 600m - USD/JPY: USD amounts          104.00 520m 104.45 543m - AUD/USD: AUD amounts 0.7400 878m  - USD/CAD: USD amounts         1.2950 1.0bn  1.2975 1.3bn 1.3000 668m - NZD/USD: NZD amounts 0.7068 1.1bn

The Bank of Japan (BOJ) Deputy Governor Masayoshi Amamiya is back on the wires now, via Reuters, making some comments on the economy. Key quotes “Need

The Bank of Japan (BOJ) Deputy Governor Masayoshi Amamiya is back on the wires now, via Reuters, making some comments on the economy. Key quotes “Need to pay attention to downside risk to the economy.” “Want to quickly launch new scheme to strengthen regional financial system as quickly as possible.” Earlier today, he said that the BOJ would not hesitate to roll out further easing if necessary. Market reaction USD/JPY keeps its range around 104.40 on the above comments, adding 0.14% on the day.

US President-elect Biden: Would not act immediately to remove phase one trade deal with China developting story ...

US President-elect Biden: Would not act immediately to remove phase one trade deal with China   developting story ...

Ahead of the December 10 European Central Bank’s (ECB) monetary policy decision, the central bank policymaker Martins Kazaks said that the forecast of

Ahead of the December 10 European Central Bank’s (ECB) monetary policy decision, the central bank policymaker Martins Kazaks said that the forecast of expanding the PEPP by EUR500 billion is not very off the mark. Additional comments “ECB could consider extending TLRTOs from 3 years to 5 years.” “ECB should consider other assets in TLTRO collateral.” “Would not oppose to extending PEPP by 12 months.”

Gold (XAU/USD) is reversing a part of Tuesday’s 2% recovery rally from five-month lows, as the coronavirus vaccine optimism supersedes the renewed hop

Gold (XAU/USD) is reversing a part of Tuesday’s 2% recovery rally from five-month lows, as the coronavirus vaccine optimism supersedes the renewed hopes for additional US stimulus.  Markets remain wary about a stimulus deal despite the Bipartisan Congress’s $908 billion aid proposal. The vaccine rollout is imminent this month on both sides of the Atlantic, which could likely keep gold’s recovery in check. Meanwhile, US fiscal stimulus hopes and negative real yields could cushion the downside. The focus shifts on the US economic data and stimulus updates for fresh trading impetus. Gold: Key levels to watch The Technical Confluences Indicator shows that the XAU/USD pair faces powerful resistance around $1813/1815 levels, which is the convergence of the Fibonacci 23.6% one-month, SMA10 one-hour and Fibonacci 38.2% one-week. Recapturing the latter is critical to reviving the recovery momentum from the multi-month trough. The next crucial hurdle is seen at $1818, where the previous day high coincides with the SMA50 four-hour. The bulls could then aim for the $1825 resistance, which is the SMA10 one-day. Further north, the Pivot Point one-day R1 at $1829. Alternatively, immediate support awaits at $1807, which the Fibonacci 23.6% one-day, below which a dense cluster of supports is aligned around $1803. At that level, the Fibonacci 38.2% one-day and SMA200 one-day intersect. The next fierce support is seen at $1800, which is the confluence of the SMA5 one-day and Fibonacci 23.6% one-week. A breach of the last could trigger a fresh sell-off towards $1791, the meeting point of the Fibonacci 61.8% one-day and SMA50 one-hour. Here is how it looks on the tool About Confluence Detector The TCI (Technical Confluences Indicator) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies. Learn more about Technical Confluence

Japan Consumer Confidence Index came in at 33.7, above forecasts (29) in November

GBP/USD looks to extend its bullish consolidative mode above 1.3400 into European trading, having hit three-month highs at 1.3440 amid renewed Brexit

GBP/USD consolidates rally to three-month highs of 1.3440Brexit deal, UK vaccine rollout likely this weekend. US stimulus talks down the dollar, eyes on ADP jobs. GBP/USD looks to extend its bullish consolidative mode above 1.3400 into European trading, having hit three-month highs at 1.3440 amid renewed Brexit optimism and broad-based US dollar weakness. The underlying narrative remains the same this Wednesday, with hopes for a Brexit deal and coronavirus vaccine distribution in the UK this weekend keeping the GBP bulls underpinned. The pound jumped a big 70-pips against the greenback to the highest levels since September in the US last session after the Times Radio reported that “the UK-EU trade deal talks have, at long last, entered the mythical tunnel. Hopes (on both sides) of a deal by the end of this week.” European Commission President Ursula von der Leyen also said that the trade talks between the UK and European Union (EU) are “so tricky and so difficult” but there could be a positive outcome in the next few days,” per Bloomberg. Additionally, upbeat UK Final Manufacturing PMI for November combined with the broad US dollar slump bolstered the upside in the cable. The greenback tumbled to fresh two-and-a-half-year highs against its major rivals amid a renewal of the US fiscal stimulus talks, which sent Wall Street indices to fresh record highs. Next of relevance for the major remains the incoming Brexit updates and stimulus news while the US ADP jobs data will be also closely eyed. GBP/USD technical levels  

EUR/USD eyes stronger gains, having confirmed a bullish breakout above 1.20 on Tuesday with the biggest single-day percentage gain in nearly nine mont

EUR/USD scales 1.20 with a bullish marubozu-like candle. Dollar-bearish sentiment backs technical breakout, suggests scope for stronger gains.  The ECB is expected to boost stimulus on Dec. 10. EUR/USD eyes stronger gains, having confirmed a bullish breakout above 1.20 on Tuesday with the biggest single-day percentage gain in nearly nine months.  The pair surged by 1.21% on Tuesday on the back of a broad-based US dollar sell-off and closed well above 1.20. A bigger percentage gain was last observed on March 26, when the pair rallied by 1.36%.  With a close above 1.20, the pair has ended its three-month consolidation in the 1.16-1.20 range and resumed the ascent from March lows near 1.06. The Euro's rise is remarkable, given it is happening just days before the European Central Bank's Dec. 10 meeting, where policymakers are expected to announce additional monetary easing measures.  The bearish sentiment around the dollar looks to be powering gains in the currency pair. The dollar is on the defensive and could continue to lose ground ahead of Christmas on hopes for a swift global economic recovery on the back of potential coronavirus vaccines.  Markets are also betting on easing of the US-China tensions under the US President-elect Joe Biden's leadership. According to The New York Times, Biden has called on Congress to pass a substantial relief package to help keep businesses, households, and local governments afloat.  That has revived hopes for additional fiscal stimulus, adding to bearish pressures around the dollar.  EUR/USD could break above the psychological hurdle of 1.21 later today. At the time of writing, the currency pair is trading near 1.2080. The German Retail Sales and the Eurozone Producer Price Index scheduled for release during the European trading hours may not significantly impact the single currency. During the US trading hours, the focus would be on the Federal Reserve's Beige Book.  Technical levels  

USD/TRY is consolidating its slide below all the major hourly moving average (HMA), as the bears gather pace for the next push lower. The price charte

USD/TRY stalls downside but not out of the woods yet.1H chart spots death cross and rising wedge breakdown.Hourly RSI remains in the bearish region, below 50.00.USD/TRY is consolidating its slide below all the major hourly moving average (HMA), as the bears gather pace for the next push lower. The price charted a rising wedge breakdown on the hourly chart in the late-American trading and fell as low as $7.82 before recovering slightly to $7.8350, where it now wavers. Despite the pause in the sell-off, the risks remain skewed to the downside, as the price confirmed a death cross in the last hour. The death cross is a bearish crossover, with the 50-HMA cutting the 200-HMA from above. The Relative Strength Index (RSI) remains flat below the midline, allowing more room for declines. Therefore, the sellers target the November 30 low of $7.7432 Alternatively, the bearish 100-HMA at 7.8500 is the level to beat for the bulls. Further up, the pattern support now resistance at $7.8690 could be challenged. USD/TRY: Hourly chart

EUR/GBP is currently trading above the upper end of the falling channel, represented by trendlines connecting Sept. 11 and Oct. 20 highs and Sept. 28

EUR/GBP is currently trading above the upper end of the falling channel, represented by trendlines connecting Sept. 11 and Oct. 20 highs and Sept. 28 and Nov. 11 lows.  The pair needs to print a convincing close above 0.8987 on Wednesday to confirm a bullish breakout. That would open the doors for 0.9069 (Nov. 5 high) and 0.91.  At press time, the pair is trading 0.12% higher on the day near 0.90. On the downside, the Dec. 1 low of 0.8929 is the level to beat for the sellers.  Daily chartTrend: Bullish Technical levels  

US President-elect Joe Biden’s Treasury Secretary nominee and former Fed President Janet Yellen warned that America is battling a historic economic cr

US President-elect Joe Biden’s Treasury Secretary nominee and former Fed President Janet Yellen warned that America is battling a historic economic crisis and called for urgent policy action to avert a “self-reinforcing” downturn. Additional comments “It’s an American tragedy and it’s essential that we move with urgency. Inaction will produce a self-reinforcing downturn, causing yet more devastation.” “It is important to make sure the economic recovery leaves out no one as she pledged to “find a collective purpose to control the pandemic and build our economy back better than before.” “I pledge as treasury secretary to work every day towards rebuilding their dream for all Americans.” “To the American people, we will be an institution that wakes up every morning thinking about you, your jobs, your paychecks, your struggles, your hopes, your dignity and your limitless potential.” Related readsDollar index violates 9-year ascending trendline, hits 32-month lowGold Price Analysis: XAU/USD eases below $1815 after Tuesday's 2% rebound

Gold (XAU/USD) turned south in Wednesday’s Asian trading, having failed to find acceptance above the $1815 barrier. The XAU bulls take a breather, as

Gold bulls take a breather after Tuesday’s solid comeback.XAU/USD jumped on renewed of the US fiscal stimulus talks. Dollar slump also powered the XAU bulls amid dismal US ISM PMITraders await stimulus talks and US ADP jobs data for fresh cues. Gold (XAU/USD) turned south in Wednesday’s Asian trading, having failed to find acceptance above the $1815 barrier. The XAU bulls take a breather, as markets pause after the overnight risk rally, offering some temporary reprieve to the US dollar.  The greenback licks its wound after slumping to over two-year lows against its main peers amid a return of risk appetite after the US Treasury Secretary Steve Mnuchin and House Speaker Nancy Pelosi held fiscal stimulus talks since the election. Also, a $908 billion aid proposal put forth by the Bipartisan Congress added to the weight on the greenback and sent the inflation-hedge gold 2% higher. The US dollar was further hurt by the downbeat US ISM Manufacturing PMI and Fed Chair Powell’s cautious remarks. Despite the latest pullback, the recovery momentum in gold remains underpinned by the sell-off in the US Treasury yields and mixed Asian equities. Traders await the next batch of US macro data and stimulus updates for further upside in the metal. Gold Price Chart: Technical outlook “The yellow metal could test and possibly break above the descending 10-day Simple Moving Average (SMA) at $1,819. Acceptance above the 10-day SMA would shift the focus to the former support-turned-hurdle at $1,850. Alternatively, a failure to beat the 10-day SMA resistance would strengthen the odds of a re-test of Tuesday's low of $1,775,” Omkar Godbole, FXStreet’s Analyst noted. Gold: Additional levels  

Oil prices fell below $44 on Wednesday, extending the weekly drop, on the evidence of weakening demand conditions in the US. West Texas Intermediate (

Oil dropped as US inventory report showed weakening of demnd. OPEC failed to agree over an extension of output cuts on Monday.Oil prices fell below $44 on Wednesday, extending the weekly drop, on the evidence of weakening demand conditions in the US.  West Texas Intermediate (WTI) crude, a North American oil benchmark, printed a low of $43.92 after Tuesday's 1.74% decline from $45.08 to $44.55.  The US oil inventories rose 4.146 million barrels in the week ended Nov. 27, the American Petroleum Institute (API) data showed on Tuesday. Analysts had projected an inventory draw of 2.358 million barrels for the week. The API reported a bigger-than-expected oil inventory of 3.8 million barrels in the preceding week.  The data shows a decline in US oil demand amid the resurgence of coronavirus.  The bearish inventory data, coupled with the OPEC's decision to end a meeting on Monday without a decision on its production plans for 2021 and delay a meeting set for Tuesday until later in the week, weighed over oil prices.  The dollar index, which tracks the value of the greenback against majors, fell to 91.24, the lowest level since April 2018, on renewed expectations for additional US fiscal stimulus. That, however, failed to put a bid under oil prices.  Technical levels  

USD/CAD has turned positive for the first time in four days this Wednesday, as the bulls are attempting a minor recovery amid a sell-off in WTI prices

USD/CAD stalls its three-day bearish momentum.A minor bounce in the offing, as depicted by the 1D chart.Bearish bias intact while below the 21-DMA at 1.3048.USD/CAD has turned positive for the first time in four days this Wednesday, as the bulls are attempting a minor recovery amid a sell-off in WTI prices. The pause in broad-based US dollar selling is also aiding a tepid recovery in the major, as the price holds well above the critical three-month-old falling trendline support aligned at 1.2903 on the daily chart. A breach of the latter could trigger a sharp sell-off towards multi-month lows sub-1.2850 levels. The 14-day Relative Strength Index (RSI) has recovered from lower levels, now trading at 33.28, suggesting that a bounce cannot be ruled out in the session ahead. Recapturing the 1.2950 barrier is critical to unleashing additional recovery gains. Tuesday’s high of 1.3010 will be next on the buyers’ radars en route the 21-daily moving average (DMA) at 1.3047. USD/CAD: Daily chart USD/CAD: Additional levels  

EUR/USD closed well above 1.20 on Tuesday on a broad-based dollar sell-off. That's the first daily close above the psychological hurdle since April 30

EUR/USD eyes 1.21 after Tuesday's bullish marubozu candle. Momentum studies are also aligned in favor of the bulls.EUR/USD closed well above 1.20 on Tuesday on a broad-based dollar sell-off. That's the first daily close above the psychological hurdle since April 30, 2018.  The breakout above 1.20 looks sustainable, as Tuesday's big green marubozu candle shows sentiment is quite bullish. The 5- and 10-day Simple Moving Averages are trending north, indicating the path of least resistance is to the higher side.  As such, the psychological hurdle of 1.21 could soon come into play. At press time, the pair is trading largely unchanged on the day near 1.2075.  A close above the 10-day SMA would abort the bullish view.  Daily chartTrend: Bullish Technical levels  

Fresh bids once again emerged near the 104.20 region, allowing a tepid bounce in USD/JPY towards 104.50, as the US dollar bears took a breather after

USD/JPY attempts a bounce alongside the DXY.Risk-off returns in Asia after a record rally on Wall Street. Focus remains on US fiscal stimulus updates and ADP jobs.Fresh bids once again emerged near the 104.20 region, allowing a tepid bounce in USD/JPY towards 104.50, as the US dollar bears took a breather after the overnight slump. The sentiment has turned sour in Asia this Wednesday after the record rally seen on Wall Steet amid the revival of the US fiscal stimulus talks, which sent the riskier assets higher. This comes after the Bipartisan Congress unveiled a $908 billion aid proposal late Tuesday. Also, the US Treasury Secretary Steve Mnuchin and House of Representatives Speaker Nancy Pelosi held stimulus talks for the first time since the election. The US dollar index tumbled to fresh a two-and-a-half-year low at 92.16 on improved risk sentiment. Meanwhile, the USD/JPY bounce from lows can be partly attributed to the pause in the dollar’s sell-off, as investors await the stimulus talks for fresh impetus. The US ISM Manufacturing PMI for November missed estimates with 57.5 while Fed Chair Jerome Powell reiterated his cautious stance on the economic recovery, exacerbating the pain in the buck. Looking ahead, the focus will remain on the stimulus talks and US ADP jobs data, which will likely influence the broader market sentiment and eventually the major. Meanwhile, markets paid little heed to the comments from the BOJ Deputy Governor M. Amamiya, as he offered no new surprise. USD/JPY technical levels      

Having dived out of the trendline rising from May 2011 and May 2014 lows last week, the dollar index, which tracks the greenback's value against major

The dollar index trades at levels last seen in April 2018. US yields rise on renewed expectations for US fiscal stimulus. Risk-on overshadows rising yields and keeps the dollar on the defensive.Having dived out of the trendline rising from May 2011 and May 2014 lows last week, the dollar index, which tracks the greenback's value against majors, is now trading at 91.24 - the lowest level since April 2018.  The greenback is down 0.6% this week despite an uptick in Treasury yields and US inflation expectations.  The 10-year yield advanced by ten basis points to 0.938% on Monday, the highest level since Nov. 12. The 30-year yield jumped by 12 basis points to 1.67%. Further, long-term inflation expectations, as represented by the 10-year breakeven inflation rate, rose to 1.81%, the highest level since July 2018.  Bonds took a beating on Congress' new push for federal aid
to businesses and state and local governments hurt the
coronavirus pandemic. Further, President-elect Joe Biden indicated that he would deliver a bigger relief package, forcing markets to price in a surge in bond supply.  Some analysts believe the US fiscal largesse and the resulting uptick in yields are positive for the dollar. So far, however, that has failed to materialize.  The dollar is losing ground, possibly because the renewed prospects of additional US fiscal stimulus are boding well for the risk assets. The greenback could suffer deeper declines in the near-term if the risk-on action continues.  Technical levels  

Australia has begun to recover from the economic fallout of the pandemic, but the federal treasurer Josh Frydenberg is warning there is still a “bumpy

Australia has begun to recover from the economic fallout of the pandemic, but the federal treasurer Josh Frydenberg is warning there is still a “bumpy” road ahead again. Frydenberg has repeated that the road ahead will be long, hard and bumpy but said that today's third-quarter Gross Domestic Product was a major step forward in the economic recovery. We saw a rebound from the economic recession confirmed in today's GDP data: Australia Q3 real GDP +3.3 pct QoQ, s/adj (Reuters poll +2.6 pct). Australia Q3 real GDP -3.8 pct YoY, s/adj (Reuters poll -4.4 pct). This data fell during the RBA's governor Phillip Lowe comments before the Parliament Economic Committee at time moment.  The Aussie has been underpinned by his bullish appraisal of the data and a risk-on environment pertaining to the prospects of a global economic recovery and international commodities trade environment.  AUD/USD printed a fresh rally high of 0.7389 after the data but the leg work was already done on Wall Street with stocks reaching all-time highs and vaccine sentiment at the core of the bid.   

The Bank of Japan (BOJ) will not hesitate to roll out additional easing measures if necessary, Deputy Governor Masayoshi Amamiya said on Wednesday. Ad

The Bank of Japan (BOJ) will not hesitate to roll out additional easing measures if necessary, Deputy Governor Masayoshi Amamiya said on Wednesday. Additional quotes “Current powerful easing exerting an intended effect on the economy.” “Corporate finance will remain under stress as an economic improvement to be moderate.” “Will extend the duration of COVID-response measures beyond march deadline as needed, with an eye on pandemic impact on economy.” “Must be vigilant to chance the financial system will be affected if corporate, household woes shift to solvency problems from liquidity constraints.” “Private consumption gradually picking up, likely to continue recovery.”  

GBP/USD is trading largely unchanged on the day near 1.3413 at press time, having faced multiple rejections above 1.3430 in the past nine hours. The s

GBP/USD is trading largely unchanged on the day near 1.3413 at press time, having faced multiple rejections above 1.3430 in the past nine hours.  The struggle to keep gains above 1.3430 has weakened the immediate bullish case put forward by the 4-hour chart sideways channel breakout confirmed on Tuesday.  As such, a re-test pf 1.3398 – the upper end of the sideways channel – could be in the offing. A bounce from that level would revive the case for a rally to 1.3483 (Sept. 1 high).  Alternatively, acceptance under 1.3398 would shift risk in favor of a drop to 1.3285 (Nov. 27 low).  4-hour chartTrend: Neutral-to-bearish Technical levels  

According to the latest Reuters poll of analysts, 35% percent of them believe the UK and European Union (EU) will fail to reach a trade deal while a m

According to the latest Reuters poll of analysts, 35% percent of them believe the UK and European Union (EU) will fail to reach a trade deal while a majority of them think the economy will take at least two years for GDP to reach pre-COVID-19 levels.   more to come ...

With GBP/JPY either at take profit (TP) for a 1:2 risk to reward or still an open trade but risk-free, targeting a 3R TP, traders can now start to foc

GBP crosses are in the hands of the bulls, and its time to take your pick.Currently, GBP/JPY is running in profit and GBP/CAD is next on the watchlist. With GBP/JPY either at take profit (TP) for a 1:2 risk to reward or still an open trade but risk-free, targeting a 3R TP, traders can now start to focus on additional sterling trades.  GBP/JPY Price Analysis: Bullish 4-hour close opens prospects of 3R extensionAn entry in GBP/CAD is the most compelling opportunity as of today. The following illustrates where there is an opportunity on the weekly time frame for an upside extension that can be managed from a 4-hour chart.  Weekly chart Price is rising a dynamic support line with further upside potential.  We have seen a weekly impulse breaking old structure, (Aug. double bottom lows), followed by a significant correction to prior resistance that now is expected to continue acting as support.  The theory is that we have seen the corrective lows already and the chart is prime for an extension, or, another bullish impulse into supply territory.  Daily chart However, there is still some work to be done on the daily chart. Problematically, we still have the structure to get through and close above on a daily basis, highlighted on the chart in the eclipse. Price can easily turn south from here otherwise. However, moving down to the 4-hour chart, there is enough price action and structure here to work with and in preparation of a daily close above said structure.  4-hour chart We can identify the current support structure from where the price would be expected to retest prior to moving significantly higher.  On a daily bullish close, the price will be above the 21-moving average and MACD would be expected to confirm the bullish environment by moving above the zero-line. When the above criteria are met, this is when bulls will seek an optimal entry point, from the first support structure. 

The People's Bank of China (PBOC) has set the yuan reference rate at versus 6.5611 versus Tuesday's fix at 6.5921. The central banks is injecting CNY

The People's Bank of China (PBOC) has set the yuan reference rate at versus 6.5611 versus Tuesday's fix at 6.5921. The central banks is injecting CNY 10 billion via seven-day reverse repo operations.

Gold is currently trading largely unchanged on the day near $1,814 per ounce. The yellow metal could test and possibly break above the descending 10-d

Gold looks north after Tuesday's bullish marubozu candle. The 10-day SMA is likely to offer resistance ner $1,819.Gold is currently trading largely unchanged on the day near $1,814 per ounce.  The yellow metal could test and possibly break above the descending 10-day Simple Moving Average (SMA) at $1,819, as Monday's bullish marubozu candle shows buyers have regained control.  A bullish marubozu occurs when buyers control the price action from the opening bell to the closing bell. More substantial gains often follow the candlestick pattern.  Acceptance above the 10-day SMA would shift the focus to the former support-turned-hurdle at $1,850. Alternatively, a failure to beat the 10-day SMA resistance would strengthen the odds of a re-test of Tuesday's low of $1,775.  Daily chartTrend: Bullish Technical levels  

AUD/USD is extending gains, with Australia's economy staging a bigger-than-expected rebound in the third quarter. The data released soon before press

AUD/USD jumps 10 pips to clock a fresh session high near 0.7390. Australia's economy chalked up a bigger-than-expected economic rebound in the third quarter. The US stimulus expectations keep the dollar under pressure. AUD/USD is extending gains, with Australia's economy staging a bigger-than-expected rebound in the third quarter.  The data released soon before press time showed Australia's Gross Domestic Product (GDP) rose 3.3% quarter-on-quarter in the July to September period, beating the expected growth rate of 2.6% by a significant margin. The economy had contracted by 7% in the second quarter. The annualized growth rate stood at -3.8% versus -6.3% in the third quarter.  The above-forecast quarter-on-quarter data validates the Reserve Bank of Australia's claim that the economy has been outperforming its expectations and weakens the case for additional stimulus. The central bank left key policy tools unchanged on Tuesday, having reduced the benchmark interest rate and the yield curve control target to 0.10% in November.  AUD/USD jumped from 0.7380 to 0.7390 following the GDP release, extending the early rise from 0.7362. The US Congress' renewed push for or federal aid to business, state, and local governments facing the second wave of coronavirus has revived expectations for bigger fiscal stimulus. As such, risk assets, including the Aussie dollar, are likely to trade better bid during the day ahead.   Technical levels  

Australia's Gross Domestic Product has arrived as follows: Australia q3 real GDP +3.3 pct qtr/qtr, s/adj (Reuters poll +2.6 pct). Australia q3 real GD

Australia's Gross Domestic Product has arrived as follows: Australia q3 real GDP +3.3 pct qtr/qtr, s/adj (Reuters poll +2.6 pct).  Australia q3 real GDP -3.8 pct yr/yr, s/adj (Reuters poll -4.4 pct).
 Australia q3 final consumption expenditure +5.9 pct, s/adj. Australia q3 gross fixed capital expenditure -0.1 pct, s/adj. Australia q3 chain price index -0.1 pct. AUD/USD has popped to fresh highs on the data.  Meanwhile, this rebound from the economic recession confirmed in today's data will be compared to the rhetoric of the RBA's governor Phillip Lowe who is speaking before the Parliament Economic Committee at time moment.  Markets are keen to know if there is going to be a shift away from its relaxed stance on the relatively strong AUD. In the main, more easing (and especially negative rates) looks quite unlikely, which has underpinned the currency to date.  RBA's Lowe: Prepared to do more if it is required Description of Gross Domestic Product The Gross Domestic Product released by the Australian Bureau of Statistics is a measure of the total value of all goods and services produced by Australia. The GDP is considered as a broad measure of economic activity and health. A rising trend has a positive effect on the AUD, while a falling trend is seen as negative (or bearish) for the AUD.  

Australia Gross Domestic Product (QoQ) registered at 3.3% above expectations (2.6%) in 3Q

Australia Gross Domestic Product (YoY) came in at -3.8%, above expectations (-4.4%) in 3Q

The bond market's gauge of future US inflation has risen to the highest level in 17 months, with Congress' renewed pushed for federal aid to business,

The bond market's gauge of future US inflation has risen to the highest level in 17 months, with Congress' renewed pushed for federal aid to business, state, and local governments facing the second wave of coronavirus.  As indicated by the US 10-year breakeven inflation rate, inflation expectations ticked higher to 1.81% on Tuesday, the highest level since July 23, according to data source Federal Reserve Bank of St. Louis.  Yields on the regular 10- and 30-year treasuries spiked, with the latter rising over ten basis points to 1.683%, as investors priced in prospects of increased spending under Biden's leadership.  According to analysts quoted by Bloomberg, the bond market is playing catch-up with enthusiasm seen in the rest of the market. Equities gained ground last month as positive news on the coronavirus vaccine front triggered hopes for a swift global economic recovery.

United Kingdom BRC Shop Price Index (YoY) declined to -1.8% in October from previous -1.2%

Today we have the release of Australian Gross Domestic Product at the top of the hour. After the release of key partial indicators this week, analysts

Today we have the release of Australian Gross Domestic Product at the top of the hour. After the release of key partial indicators this week, analysts at ANZ Bank expect GDP to have bounced 3.0% Q/Q in Q3. ''This would leave GDP 3.9% below year-ago levels.'' ''Consistent with the run of better-than-expected partial economic indicators, the forecast bounce in Q3 GDP is larger than we had anticipated a few months ago.'' ''While the extended lockdown in Melbourne will weigh on growth, the recovery in other states has been impressive.'' Meanwhile, analysts at Westpac said that the second half of the year sees the virus under control locally (but only after the 2nd lockdown in Victoria) and restrictions being reversed. ''We expect Q3 GDP to expand by 3.0% (-3.9% year) but with plenty of scope for surprise and risks tilted downwards. The median forecast is 2.5%Q, -4.4% year.'' How might the GDP affect AUD/USD AUD/USD recovers back towards daily highs around 0.7370 ahead of key GDP data Following the central bank's interest rate decision, where the Board decided to maintain the policy settings it adopted at the November Board meeting, AUD/USD has enjoyed a risk-on rally. AUD/USD is already testing 0.7380s and the end of November consolidation period. The US dollar has been under pressure as well due to the prospects of easier dollars on the back of the Federal Reserve and fiscal stimulus.  So, whether this data can make a material difference is wholly dependent on what aspect of the Australian narrative the market is focussed.  A rebound from the economic recession confirmed in today's data should underpin the currency, however, there is potentially more of focus on the RBA governor Phillip Lowe. Lowe is before the Parliament Economic Committee and markets are looking to see if there is a shift away from its relaxed stance on the relatively strong AUD.RBA's Lowe: Prepared to do more if it is required  Description of Gross Domestic Product The Gross Domestic Product released by the Australian Bureau of Statistics is a measure of the total value of all goods and services produced by Australia. The GDP is considered as a broad measure of the economic activity and health. A rising trend has a positive effect on the AUD, while a falling trend is seen as negative (or bearish) for the AUD.

Japan Monetary Base (YoY) below forecasts (18.1%) in November: Actual (16.5%)

The Reserve Bank of Australia's governor, Phillip Lowe, has said the central bank is prepared to do more if it is required and that negative policy ra

The Reserve Bank of Australia's governor, Phillip Lowe, has said the central bank is prepared to do more if it is required and that negative policy rate benefits outweighed by costs. Here is a live link of Lowe before the House of Representatives Standing Committee on Economics. More to come...  

Spot gold (XAU/USD) prices saw significant upside on Tuesday, rallying more than 2% from roughly $1780 to current levels around $1815. Global PMI repo

XAU/USD rallied more than 2% on Tuesday to close the session comfortably back above the $1800 mark.A rise in inflation expectations prompted by signs of inflationary pressures in global PMI reports spurred the move.Spot gold (XAU/USD) prices saw significant upside on Tuesday, rallying more than 2% from roughly $1780 to current levels around $1815. Global PMI reports suggest inflation incoming The US 10-year inflation breakeven rose above 1.8% on Tuesday (an indication that markets expect inflation to average 1.8% over the next 10 years), its highest level since May 2019. Meanwhile, PMI reports from around the world on Tuesday also pointed to the likelihood of rising inflation; China’s Caixin PMI survey said that “inflationary pressures grew as prices rose at a faster pace” and South Korea’s PMI report said that “the rise in average cost burdens was strong overall, which panel members associated with widespread increases in raw material prices. Higher supplier costs were partially passed on to customers resulting in a further, albeit marginal, rise in output charges”. Meanwhile, Tuesday’s European morning session final manufacturing PMIs out of the Eurozone said “shortages of inputs are meanwhile contributing to higher price pressures, with suppliers' increasingly able to raise prices amid sellers' market for many key inputs. Such restoration of pricing power bodes well for profits & helps ease broader deflationary concerns” and the UK report said "input cost inflation accelerated to a 2-yr high in November. Companies responded by raising their average selling prices to the greatest extent in the year so far”. Market’s seem to have sensed the smell of higher incoming inflation in the air; US treasury yields shot higher on Tuesday (10-year bond yields rising roughly 8bps to 0.921%) and the curve steepened (the 2-year 10-year bond yield spread widened by just under 6bps). However, with Fed officials continuing to signal rates at zero until at least 2023 and a continuation of accommodative policy into the foreseeable future, the chances are that US bond yields will not rise as much as inflation expectations, meaning that US real-yields are likely to remain well below 0.0%. As many analysts have pointed out over recent weeks, the subdued real rate environment and the fact that real rates are expected to remain at lows for the foreseeable future boosts the attractiveness of precious metals as an alternative investment to fixed income. Likely, this narrative was one of the key reasons why precious metal bulls were able to regain control on Tuesday, as well as those more enticed to buy precious metals at favourable prices compared to recent months. Whether Tuesday’s move to the upside signals a resumption of the precious metals bull market is one thing, but the low real rate narrative is likely to continue to offer support to the complex for the foreseeable future. XAU/USD gains capped by last Wednesday/Thursday highs XAU/USD’s gains on Tuesday were capped at last Wednesday and Thursday’s highs around the $1818 mark. If this level is to go, gold prices would have a clean run back towards the next significant area of resistance around $1850, an area which coincides with mid-September and early November lows. If the bulls lose steam, however, the pair is likely to revert lower back towards support around the $1800 mark, which also coincides with the 200-day moving average. Below that, $1765 is a significant area of support; not only is it Monday’s lows, but was also the high back on 18 May.XAU/USD four hour chart

South Korea Consumer Price Index Growth (YoY) below forecasts (0.9%) in November: Actual (0.6%)

South Korea Consumer Price Index Growth (MoM) below expectations (0.2%) in November: Actual (-0.1%)

NZD/USD closed Tuesday FX trade with gains of nearly 50 pips or close to 0.7%, as USD weakness (the Dollar Index dropped to its lowest levels in over

NZD/USD shrugged off downbeat Terms of Trade data to advance to highs of the day in the 0.7060s.The kiwi continues to position itself as a prime beneficiary of ongoing USD weakness.NZD/USD closed Tuesday FX trade with gains of nearly 50 pips or close to 0.7%, as USD weakness (the Dollar Index dropped to its lowest levels in over two and a half years under 91.20) drove its G10 counterparts higher. Downbeat Terms of Trade data does nothing to dent bullish NZD sentiment New Zealand Terms of Trade data for Q3 was just released and was broadly disappointing; while Export Volumes were up 5.6%, more than the 4.0% QoQ expected gain, prices of both exports and imports plummeted. The former dropped 8.3% in the quarter, much larger than the anticipated 3.5% drop, while import prices dropped 3.7%, more than the expected 1.0% decline. Falling import and export prices meant that the overall Terms of Trade Index dropped 4.7%, much larger than the expected 2.8% decline. Whilst the data was not great, markets saw it as out of date. Indeed, NZD traders are much more focused on the increasingly favourable outlook for the New Zealand economy in 2021 and beyond, rather than backward-looking data. For this reason, NZD continues to be one of the best G10 performers day in, day out, as the US dollar broadly continues its recent bearish trajectory. The Euro may have stolen the show on Tuesday, rallying more than 1% on the day, buoyed by technical buying on the break of 1.2000 and further evidence of the gradually improving state of the Eurozone Covid-19 pandemic, but NZD put in a respectable 0.7% rally. The kiwi is a key beneficiary of all of the ongoing themes that have been weighing on USD, such as; vaccine optimism related risk-on, the persistently high number of new Covid-19 infections being reported each day and optimism that global trade conditions are set to improve in 2021 and beyond under the Biden administration. After all, the currency is sensitive to risk and well placed to benefit from rising equity markets, New Zealand has the virus under complete control and its people are living under relatively light restrictions and New Zealand is a trade dependant country. NZD/USD continues to rally within bullish trend channel NZD/USD continues to smash through key levels of resistance as it continues to move to the north within a bullish trend channel. The bullish trend channel links the 11, 24 and 27 November highs on the upside and the 13, 19 and 30 November lows to the downside, and appears to have come into play on Tuesday as resistance. Not that NZD/USD was prevented from June 2018 highs at 0.7060 on Tuesday, a level which has seemingly offered some support in recent hours. If this support does go, however, the main levels to watch to the downside will be 30 November high at 0.7050 and lows at 0.7020, ahead of the psychological 0.7000 mark.NZD/USD two hour chart
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