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

AUD/USD

AUD/USD has reversed directions in Friday trade. In European trading, the pair is trading at 0.6827, up 0.17% on the day.

Aussie Slips on Mixed U.S. Data

There were no Australian releases on Thursday, so the focus was on U.S. numbers. Durable goods orders disappointed, with a decline of 1.1%, the first contraction in four months. The core reading came in at -0.3%, compared to a 0.5% gain in the previous release. On the manufacturing front, Manufacturing PMI improved slightly to 51.1, above the estimate of 50.7. This reading, which indicates stagnation, marks a six-month high, underscoring the weakness of the manufacturing industry.

AUD/USD Technical Analysis

This week’s downward movement looked promising, as AUD/USD dropped 0.49% on Thursday and broke through support at 0.6840. This was the strongest one-day drop since October 1. However, the pair has regrouped and posted slight gains on Friday. The round number of 0.6800 is an immediate support level, but looks as if it will remain in place until next week. The line of 0.6840 also remains relevant.

USD/CNY

USD/CNY  continues to have a quiet week. In Friday’s European session, the pair is trading at 7.0686, unchanged on the day.

USD/CNY Technical Analysis

USD/CNY remains range-bound, with the pair trading between 7.0592 and 7.1100.  This support level was tested last week, for the first time since mid-August. A break below this line could come as early as next week, which would be a significant development. On the downside, we find support at 7.0400, which has held since mid-August.

NZD/USD

NZD/USD is trading sideways on Friday, after recording substantial losses on Thursday. In the European session, the pair is trading at 0.6376, down 0.03% on the day.

NZD/USD Technical Analysis

NZD/USD dropped 0.68% on Thursday, its largest one-day decline since September 25. The pair tested resistance at 0.6420 early on Thursday but then reversed directions. This downward movement is putting pressure on support at 0.6320, but the pair has been unable to sustain this move on Friday. I do not expect the 0.6320 line to be tested before next week. NZD/USD has been range-bound this week, but is showing some activity, which means that the pair could break out of this range early next week.