AUD/USD, NZD/USD, USD/CNY – Asian Session Daily ForecastIt was a sleepy Asian session, as the Aussie, NZ dollar and Chinese yuan remain range-bound. With no major U.S. events on the calendar, it looks like the calm will continue for these currencies in the European and North American sessions.
AUD/USD is slightly lower in the Wednesday session. In European trading, the pair is trading at 0.6841, down 0.28% on the day.
Ahead – Manufacturing, Services PMIs
It’s another quiet day on the fundamentals front, with no major releases out of the U.S. or Australia. The spotlight will be on Australian PMIs for October. The manufacturing PMI disappointed in September, with a reading of 49.5, which points to contraction. Services PMI, which has usually been stronger than its manufacturing counterpart improved to 52.5. Strong PMIs could pull the Aussie higher.
AUD/USD Technical Analysis
AUD/USD has been rangebound all week, but the pair is showing some downward movement. The current downtrend has resulted in the testing of support at 0.6840. Below, there is support at the round number of 0.6800. On the upside, 0.6880 remains vulnerable.
USD/CNY continues to drift this week. In Wednesday’s European session, the pair is trading at 7.0799, up 0.05% on the day.
USD/CNY Technical Analysis
USD/CNY remains range-bound, with the pair showing little appetite for much movement. A downtrend earlier in October saw the pair test support at 7.0592. However, that rally by the yuan fizzled, as USD/CNY has since traded between 7.0592 and 7.1100. The pair appears comfortable in the current range, so the current lack of activity could continue for the remainder of the week.
NZD/USD is slightly lower in Wednesday trade. In the European session, the pair is trading at 0.6402, down 0.25% on the day.
NZ Trade Deficit Drops, Beats Forecast
New Zealand’s trade deficit narrowed to NZ$1.24 billion in September, dropping sharply from the deficit of NZ$1.56 billion in August. This beat the estimate of NZ$1.37 billion. The improvement was credited to stronger sales of meat and milk, both of which are key export products.
NZD/USD Technical Analysis
NZD/USD broke above resistance at 0.6360 last week and the upward trend continued (slowly) all the way until Tuesday, when the pair tested resistance at 0.6420. However, the pair has retraced and is currently trading at 64.00. Still, the line at 0.6420 is fluid, and I would not be surprised to see the pair regroup and push above this level.