From the FXWW Chatroom – FX took a back seat o/n with Thanksgiving ahead (US bond and equity markets are closed today). AUDUSD declined to 0.7216 following a surprisingly weak 3Q Private Capex report; USD/Asia was slightly higher. We remain biased towards EURUSD lower, USDCHF higher, and the Antipodeans lower vs USD. Few data ahead: GFK Consumer Confidence in Germany and CPI in Japan.
{EU} EURUSD Lower => Headlines suggesting a tiered deposit rate system has the market excited that the ECB could cut by more than originally expected and EURUSD has printed new cycle lows. Our bias remains to fade rallies and we like 1.0660/1.0700 as entry points with a stop at 1.0750. On the downside we watch 1.0565 (yesterday’s low).
{AU} AUDUSD Lower => AUD has given up some gains o/n after Australia’s private capex report was weaker than expected across the board – highlighting the risk of an outright contraction in domestic demand in 3Q2015 and a disappointing recovery in growth through 2016. We continue to like Aussie lower with key levels: resistance at 0.7300 and 0.7382 above with support at 0.7205 (100dma).
{SZ} USDCHF Higher => Some momentum stops were going through in USDCHF after it had made new YTD highs (above the Jan pre-depeg highs). We still like the pair higher. Key levels for the session: resistance at 1.0261 (yesterday’s high) and support at 1.0144 (week’s low).
{NZ} NZDUSD Lower => We still like the pair lower and the key levels for today will be: support at 0.6550 (yesterday’s low) and resistance at 0.6615.
{JN} USDJPY Neutral => We remain neutral on the pair. Support stays at 122.26 (week’s low) and 121.90 below while resistance stays at 123.00 (psychological level) and 123.60 above.
{CA} USDCAD Neutral => We keep our neutral bias on the pair with key levels: support at 1.3285 while resistance stays at 1.3435 ahead of 1.3457 (cycle’s high).
View further market information in the FXWW Chatroom with a free trial