Asia roundup:

  • Australia Dec employment decrease to 34.7k vs 63.6k
  • Australia Dec full-time employment decrease to 15.1k vs 41.9k
  • Australia Dec unemployment rate increase to 5.5% vs 5.4%
  • Australia Dec participation rate increase to 65.7 vs 65.5%
  • Japan’s Nov industrial output down to 0.5% vs 0.6%

What’s on today?

  • China’s 4Q2017 GDP data is about to release at 3 pm Beijing time today.

Reuters expected 6.7% growth, but Blomberg markets expect 6.8% growth.

FX to watch: AUDSUD and USDCNY/USDCNH

  • Bank of Germany Governor Weidmann speech
  • December housing starts and construction permits

AUDUSD again failed to handle 0.80 marks in Asia trade, dip to 0.7940 post- labor data. It has a parallel minor support finds at 0.7935 below this 0.7900 exists. A move below 0.79 needed to forecast further retracement to 0.7800.

The recent four-day trading pattern suggests selling pressure looms at higher levels. 0.7980-0.8030 is the initial supply zone followed by 0.8070 it’s 200MA (MONTHLY)

USDCNH: The price action remains between 6.4140-6.4475. The daily RSI indicating a positive divergence and the oscillator turns bullish. Fails to hold Monday’s low 6.4140 could retrace further to 6.4000 and 6.3800.  Alternatively, a daily close above 6.448 could open to 6.48/6.50.

Bank of America Merrill Lynch reported that considering the slowdown in China’s economic growth and deleveraging, coupled with Sino-US trade tensions and the situation in Northeast Asia, the PBoC’s bottom line for strengthening the renminbi against the U.S. dollar is at 6.38, when the renminbi index will break 95.5 and maintain the view that the pressure on devaluation will return, Wallstreet cn reported.

EURUSD: After hitting a 3-year high Euro drops to 1.2160 in Asia session today. Before retracing to 1.2160 it was spotted with an H&S pattern, pattern target aiming at 1.2150 nearly completed. The pair has made a high at 1.2200 in Asia session and hit lows at 1.2160 levels. Euro dipped against the USD on Wednesday as traders encouraged to take profit and focus shifts to next week’s ECB policy meeting.

Intraday resistance 1.2300 and 1.2330

Support 1.2150 and 1.2100

Daily parallel resistance seems at 1.2330 Oct 2008 low above this 1.2360 200EMA (monthly) exists.

Also read: CAD insights

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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