Euro outperformed and NZD underperformed in the Tuesday session.
- The Aussie dollar little strengthens after the NAB October data held steady at 8. The cross currency AUDNZD well supported after the NAB data on the other side weakens the kiwi dollar across the board. According to NZB, Business conditions hit an all new high in October.
- The cross NZDUSD softened in late Asia session, but manages to hold the Oct low. Last week’s RBNZ policy statement was hawkish. Near-term price action remains between 0.6817-0.7000.
- GDP data rose in Germany and EZ pushed the euro more than 1% fresh November high. Germany Gross domestic product up 0.8% in the 3rd quarter of 2017. GDP up by 0.6% in both euro area and EU +2.5% in both zones compared with the third quarter of 2016.
- The pound was little changed after the CPI data. UK October CPI was 3.0% unchanged from Sept. Post the weak CPI data the initial reaction was to the South later rebounded against the soft USD. Ahead of today’s jobs data, we expect a trading range between 1.3230-1.3060. Weekly support finds at 1.3000.
- US October PPI increased by 0.4%. But the dollar index softened added fuel to the Euro bulls.
What’s on today?
Asia: Japan prelim GP q/q basis, Australia wage price index q/q basis
Europe: UK jobs data
US: CPI readings and Retail sales
Chart of the day:
GBPUSD: Spotted with a symmetrical triangle.
New Forecast: We are focusing on NZDUSD. Currently trading at the lower end of the trading range 0.6817 (May 11 low)-0.7040. We see a better risk-reward ratio. Recently NZD jumped twice after better jobs data and hawkish RBNZ tweaks. The daily oscillator already gave a bullish break, RSI will follow soon. The current NZDUSD trading scenario reminds us the AUDNZD back in Sep-Nov 2016.
View: Limited downside risk.
Take profit: EURCAD
Last week we forecast a bullish reaction and the cross-reacted inline with our tunes. Further upside will available above 1.5060. Resistance seems between 1.5040-1.5060. Canada CPI (Fri)in focus. We advise taking profit action at the cmp 170 pips in hand.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
What is your Technical View?
Do you have a different idea? Please leave us a comment and get an answer from our professional analysts.