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

The Australian and New Zealand dollars are showing some life and have gained ground on Friday. The Chinese yuan is flat, despite a positive Chinese manufacturing report.
Kenny Fisher

AUD/USD

AUD/USD has posted gains in Friday trade. In the European session, the pair is trading at 0.6904, up 0.24% on the day.

PPI, Chinese Data Boost Aussie

The Australian dollar is sensitive to key Chinese events, as China is Australia’s biggest trading partner. China’s Caixin Manufacturing PMI improved to 51.7 in October, up from 51.4 a month earlier. This marked a fourth straight improvement for the indicator. As well, this was the strongest reading since February 2017. On the inflation front, the Australian Producers Price Index remained steady at 0.4% in the third quarter, matching the forecast.

AUD/USD Technical Analysis

AUD/USD continues to test resistance at 0.6920. Above, we find resistance at 0.6960. This line could find itself under pressure early next week. The 50-EMA, which is at 0.6866, is indicative of an uptrend, as the pair has been above this line for the past three sessions. If the pair can close the week above the 50-EMA, I would expect to see buyers early Monday.

AUDUSD 1-Day Chart

USD/CNY

USD/CNY is flat in Friday trade. In the European session, the pair is trading at 7.0387, up 0.01% on the day.

Caixin Manufacturing PMI Beats Forecast

There was some good news on the manufacturing front, as the Chinese Caixin Manufacturing PMI improved to 51.7 in October, its best reading since February 2017. This also beat the forecast of 51.4, and points to slight expansion. This release comes on the heels of the official Chinese Manufacturing PMI, which came in at 49.3, a sixth straight contraction. The Caixin PMI focuses on medium and small companies which are not covered by the official release.

USD/CNY Technical Analysis

USD/CNY tested support at 7.0400 on Thursday and appears to have checked out for the weekend. There is an immediate support at 7.0400 and I would expect this line to come under a renewed attack early next week. The pair has remained below the 50-EMA for the past week, indicative of a downtrend. Currently, the 50-EMA is sitting comfortably in resistance at 7.0750.

USD/CNY 1-Day Chart

NZD/USD

NZD/USD continues to gain ground. In Friday’s European session, the pair is trading at 0.6435, up 0.33% on the day. In the Asian session, the pair touched a high of 0.6442, its highest level since September 12. There are no New Zealand events on the schedule.

NZD/USD Technical Analysis

NZD/USD traded sideways early in the week, but we are seeing signs of an uptrend. The pair broke above the 50-EMA on Wednesday, which was a bullish signal. NZD/USD has not disappointed and continues to gain ground. The 50-EMA, which is at 0.6363, has strengthened in support. NZD/USD has broken above resistance at 0.6420 on Friday. It has room to continue upwards towards resistance at 0.6490, which is protecting the symbolic 0.65 level.

NZD/USD 1-Day Chart
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