JPY outperformed and AUD underperformed in the Wednesday session.
• Risk-off mood lifted the JPY in Wednesday session. JPY rose more than a percent against the Aussie dollar. Equities continue to give up. Japan’s first estimate of Q3 GDP data missed the expectations slightly. Japan’s 3Q GDP was 0.3% qoq, 0.4% expected vs 0.6%
• The Aussie dollar softened after the Wage Price Index fell below exceptions. The cross currency AUDNZD erased the previous day gains completely. The 3Q 2017 WPI rose 0.5% and 2.00% over the year, data released by the Australia Bureau of Statistics. For the last 12 quarters (from the 2Q 2014) the WPI has recorded quarterly wages growth in the range of 0.4 to 0.6%.
• The cross NZDUSD little changed yesterday facing resistance again at 20MA.The US dollar strength is the key factor to the kiwi softness. Last week’s RBNZ policy statement was hawkish. Near-term price action remains between 0.6817/0.6795-0.7000.
• EURUSD failed at the supply zone, erased all the earlier intraday gains. It has managed to close above 50MA.
• GBPUSD remains in a triangle we expect a trading range between 1.3230-1.3060. Weekly support finds at 1.3000. UK Shed 14k jobs in 3Q. EURGBP daily chart appears similar to the EURUSD. Supply zone remains between 0.9020-0.9030
• US October headline CPI increased a0.1% m/m basis. Core CPI inflation printed in line with expectations at 0.2% m/m basis and 1.8% y/y basis.
USDJPY re-tested 50ma and rebounds
USDCHF re-tested 100WMA and rebounds. Weekly triple top visible
EURUSD rejected at the parallel trendline
EURGBP rejected at a supply zone 0.90-0.9030
Gold remains in a triangle with higher lows formations. We expect a bullish break
CHFJPY spotted with a double top
AUDJPY re-tested 100EMA (weekly) 85.50.
What’s on today?
• Asia: Aussie jobs data
AUDUSD, AUDCAD, AUDJPY and AUDNZD are at big levels.
AUDJPY: It has re-tested the 100WEMA finds at 85.50 and a parallel support finds at 85.40. A move below 85.40 needed to retrace further to 85 and 84.50 initially. The daily RSI is nearly oversold at 29.90 but the oscillator remains bearish. A weekly close below the 18-month ascending trendline further retracement could expect to 83.50/83.20.
Europe: UK Retail sales.
US: Unemployment claims
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