The Australian dollar has lost ground after disappointing employment numbers. The New Zealand dollar and Chinese yuan are showing limited movement.
AUD/USD has sustained considerable losses on Thursday, after a lackluster performance earlier in the week. In the European session, the pair is trading at 0.6805, down 0.50% on the day. The Aussie has dropped into 0.67-territory for the first time since mid-October.
The markets were greeted with weak employment numbers early on Thursday. Employment change fell by 19.0 thousand, compared to the estimate of +16.2 thousand. This was the first decline since July 2018. The unemployment rate rose to 5.3%, up from 5.2%.
In the Asian session, the pair easily broke below the 50-EMA, which is at 0.6833, and went on to test support at 0.6807. Will the downtrend continue? The next support line is at 0.6770, so there is room for AUD/USD to push lower. On the upside, 0.6807 remains fluid and could see further action during the day. Above, there is resistance at 0.6820.
USD/CNY is almost unchanged on Thursday. In the European session, the pair is trading at 7.0181, down 0.04% on the day.
Chinese industrial production slowed considerably in October. The indicator gained just 4.6%, compared to 5.4% a month earlier. This release underscores the broad-based slowdown in the manufacturing sector, much of which is due to the trade war with the U.S.
USD/CNY has pulled away from the symbolic 7.00 level, but it’s too early to tell if this will become a sustained uptrend. On the upside, we find resistance at 7.0400. On the downside, there is support at 6.9735, which was tested late last week. Below, we have support at 6.9500.
NZD/USD has posted slight losses on Thursday, after gaining 1.2% on Wednesday. In the European session, the pair is trading at 0.6396, down 0.23% on the day. Later in the day, New Zealand releases Business NZ Manufacturing Index, which has been in contraction mode for the past three months.
There is immediate resistance at 0.6420, as this line remains relevant. Above, we find resistance at 0.6490, protecting the round number of 0.6500. On the downside, the pair broke above the 50-EMA on Wednesday, and this line has switched to a support role. Currently, it is at 0.6372. Below, there is weak support at 0.6357. The support level of 0.6300 has strengthened after the pair’s sharp gains on Wednesday.
Kenny is an experienced market analyst, with a focus on fundamental analysis. Kenny has over 15 years of experience across a broad range of markets and assets –forex, indices and commodities.