AUD/USD, NZD/USD, USD/CNY – Asian Session Daily Forecast

AUD/USD

AUD/USD is showing little movement for a second successive day. In Friday’s Asian session, the pair is trading at 0.6761, up 0.12% on the day.

Ahead – Soft Core Durables Goods Expected

With no Australian events to wrap up the week, key U.S. numbers could have a magnified impact on the movement of AUD/USD. Today’s schedule includes durable goods orders, personal spending and consumer confidence. I am keeping a close eye on core durable goods orders, as the markets are braced for a dismal reading of 1.1% in August. The indicator boasted a healthy gain of 2.1% in July, and a sharp drop could cause investment jitters and dampen risk appetite, which would weigh on the Australian dollar.

AUD/USD Technical Analysis

AUD/USD continues to hover close to 0.6760. This line has been under attack for much of the week and remains fluid. This trend will likely continue for the remainder of the day. Below, we find support at 0.6710. On the upside, the pair tested 0.6805 early in the week, but has since retreated to lower ground.

USD/CNY

USD/CNY has recorded small gains on Friday. In the Asian session, the pair is trading at 7.1465, up 0.09% on the day.

Yuan Dips to 3-Week Low

The dollar has been creeping higher this week, taking small steps and frequent breathers, but nonetheless pushing upwards. It has been a low-key rise, but USD/CNY has pushed above the 7.13 line for the first time since September 6. The fact that trade talks are back on between the U.S. and China after a lengthy lull has boosted the dollar. President Trump has weighed in, stating earlier in the week that a deal could be closer than people think. Trump’s rhetoric should, of course, be taken with a grain of salt, but further positive developments with regard to the trade war could boost the U.S dollar.

USD/CNY Technical Analysis

The pair showed steady downward movement in the first half of September, but has since reversed directions and recovered most of these losses. Keeping in mind that “the trend is your friend”, the pair could well continue to climb higher and put pressure on 7.1700. This major resistance line seemed safe just a few weeks ago, but has become more vulnerable as the dollar gains ground. On the downside, 7.1100 has assumed a support role after USD/CNY broke above it at the start of the week. Below, we find support at 7.0592.

NZD/USD

NZD/USD is trading sideways on Friday and seems content to call it a week. I don’t expect anything more than minor movement from the pair for the remainder of the day.  In the Asian session, the pair is trading at 0.6296, down 0.04% on the day.

RBNZ Sounds Neutral, Calming Investors

The New Zealand central bank stayed on the sidelines this week, in sharp contrast to the August meeting, when rate-setters slashed rates by 1/2%, shocking the markets. At this week’s meeting, the bank did keep the door open to further rate cuts, and the NZ dollar lost ground in response to the bank’s dovish stance. However, NZD/USD rebounded on Thursday, as RBM Governor Orr stated that “unconventional policy is unlikely”, as he believes that the effects of an easing in monetary policy is having a positive effect on the economy.  This was music to investor’s ears, as another rate cut before the end of the year is unlikely, assuming that economic conditions do not deteriorate.

NZD/USD Technical Analysis

NZD/USD has been hovering close to 0.6280 throughout the week. Currently, this is an immediate support level. We could see the pair test this line on Friday, but it is unlikely to make a clean break and fall further. Below, there is support at 0.6240. Above, there is resistance at 0.6360, which law saw activity on September 18.