AUD/USD, NZD/USD, USD/CNY – Asian Session Daily ForecastThe U.S. dollar was broadly lower on Thursday, but has leveled off in Friday trade. The Australian and Chinese currencies are slightly higher in early Friday trade, while the New Zealand dollar is flat.
AUD/USD has posted slight gains in Friday trade. In the Asian session, the pair is trading at 0.6772, up 0.14% on the day.
Aussie at 3-Week Highs, More to Come?
AUD/USD gained ground on Thursday and has added further gains on Friday. The pair is now at its highest level since September 25. The gains follow weak U.S. inflation data on Thursday, so I would frame it as a case of U.S. dollar weakness rather than Aussie strength. As such, I do not expect any significant upward movement before the end of the trading week.
AUD/USD Technical Analysis
AUD/USD tested resistance at 0.6760 on Thursday and remains just slightly above this line on Friday. The pair has been range-bound between 0.6720 and 0.6760 since September 25 – if the Aussie can consolidate above 0.6760, it could make an upward move towards major resistance at the round number of 0.6800. Above, we find resistance at 0.6840.
The Chinese yuan is enjoying its best week since late September, with gains of 0.50%. In Friday’s Asian session, USD/CNY is trading at 7.1057, down 0.13%. The pair took advantage of soft U.S. inflation numbers, as the dollar was broadly lower as a result. China was scheduled to release New Loans on Friday, but this has been postponed to Monday, so we could see some movement in Monday’s Asian session. The indicator is expected to rise to 1350 billion yen ($190 million) in September.
USD/CNY Technical Analysis
There was an important development on Thursday as USD/CNY tested support at 7.11, which had remained intact since late September. The main trend is down, so I would not be surprised if the pair consolidates below this line and avoids a retracement. If this occurs, the pair has room to move towards support at 7.0590.
NZD/USD posted gains on Thursday, coming close to the October high. The pair has leveled off on Friday. in Asian session, the pair is trading at 0.6321, up 0.04% on the day.
NZ Manufacturing Index Contracts
There was disappointing news on the manufacturing front, as the NZ Manufacturing Index posted a third successive contraction. The September reading of 48.4 was unchanged from the previous month. NZD/USD managed to post gains on Thursday, courtesy of soft U.S. inflation numbers.
NZD/USD Technical Analysis
NZD/USD has put a bit of distance between the pair and support at 0.6280. Still, the pair didn’t show any clear direction this week, and Friday is shaping up as a quiet day for the pair. This means that resistance at 0.6357 remains safe for now.