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

AUD/USD

AUD/USD is showing little movement on Thursday. In the Asian session, the pair is trading at 0.6714, up 0.09% on the day.

Aussie Steadies After RBA Cut

The Aussie lost ground after the RBA lower rates on Tuesday, marking the third rate cut in four months. AUD/USD touched a low of 0.6670 in Wednesday, its lowest level since 2009. Although the currency has stemmed the losses for now, investor sentiment remains bearish towards the Aussie and we could see the downward trend continue before the week is over.

AUD/USD Technical Analysis

AUD/USD is trading sideways and has been unable to move away from the 0.6710 line, which remains fluid. Below, there is support at 0.6665. On the upside, there is resistance at 0.6760, which was relevant last week.

USD/CNY

Chinese banks are closed for a holiday for the remainder of the week, so USD/CNY is expected to remain flat throughout the day. Currently, the pair is at 7.1476.

Yuan at 3-Week Low after Soft Chinese Data

The dollar started the week with gains, courtesy of weak Chinese manufacturing PMIs for September. The official Manufacturing PMI came in at 49.8, pointing to contraction for a fifth straight month. The manufacturing sector has been hard-hit by the ongoing trade war with the United States, which is weighing on the Chinese currency. Currently, USD/CNY is at its highest level since September 6.

USD/CNY Technical Analysis

USD/CNY showed an upward thrust in the last week of September, but this has stalled due to the closure of Chinese banks for a national holiday. The main trend remains up, with the pair setting its sights on resistance at 7.1700. This line appeared safe in early September, but has become more vulnerable as the dollar has gained ground. On the downside, 7.1100 switched to support last week.

NZD/USD

NZD/USD is listless in Thursday trade. In the Asian session, the pair is trading at 0.6263, down 0.07% on the day.

NZ Dollar Under Pressure After 10-year Low

Earlier in the week, the New Zealand dollar dropped to 0.6249, its lowest level since February 2009. Investors were not pleased with two business confidence reports, both of which pointed to weaker business confidence in the economy. This comes despite the central bank slashing rates by 50 basis points in September. Business investment and hiring is likely to soften as well, which could weigh on the wobbly New Zealand currency.

NZD/USD Technical Analysis

NZD/USD has been on a downward trend since mid-September and came close to the 63.00 line on Tuesday, its lowest level since 2009. The pair is trading in a narrow range, so the immediate resistance and support levels are vulnerable. The line of 0.6280 was active last week and is a weak resistance line. On the downside, 0.6240 was tested on Tuesday. Below, we find support just below the 62.00 line, at 0.6190.