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

AUD/USD

AUD/USD has posted small gains in the Tuesday session. In European trading, the pair is trading at 0.6877, up 0.09% on the day. There are no major events out of Australia or the U.S. on Tuesday, so the pair will likely remain calm throughout the day.

AUD/USD Technical Analysis

AUD/USD has tested resistance at 0.6880 on Tuesday, the first time this line has seen action since mid-September. With the pair posting gains last week and continuing to move higher this week, the trend is up. I would expect the 0.6880 line to break later in the week. Above, we find resistance at 0.6920, which has held since July 22.

USD/CNY

USD/CNY is flat in early Tuesday trade. In the European session, the pair is trading at 7.0737, unchanged on the day.

Last week’s disappointing Chinese GDP has cooled off the yuan. The economy expanded by 6.0% in the third quarter, shy of the estimate of 6.1% and down from 6.2% in Q2. This marked the lowest quarterly growth rate since 1992, when records were first kept. The ongoing trade war with the U.S. has hampered growth, with the manufacturing and export sectors being particularly hard-hit.

USD/CNY Technical Analysis

USD/CNY remains range-bound this week. The Chinese yuan showed some sustained downward movement between October 9-14, and even tested support at 7.0592 last week. However, the rally has fizzled, as USD/CNY has since traded between 7.0592 and 7.1100. The former level remains within striking distance, although the pair appears comfortable in the current range.

NZD/USD

NZD/USD has posted gains in Tuesday trade.  In the European session, the pair is trading at 0.6428, up 0.25% on the day.

Kiwi Ignores Soft Cons. Spending Report

New Zealand Credit Card Spending for September gained 4.8% in September, sharply lower than the August gain of 6.0%. This points to lower consumer spending, a key driver of economic activity. Still, the New Zealand dollar is in positive territory on Tuesday. We’ll get a look at trade balance on Wednesday, with the trade deficit expected to narrow to NZ$1.375 billion.

NZD/USD Technical Analysis

NZD/USD has started the week with gains and the pair has tested resistance at 0.6420 on Tuesday. This is a significant development, as this line has held since mid-September. The trend for the pair is higher, as can be clearly seen from the 9 EMA line. On the upside, there is resistance at 0.6460. The pair could put pressure on this line during the week.