AUD/USD, NZD/USD, USD/CNY – Currencies Showing Limited Movement

It has been an uneventful Asian session, with the New Zealand dollar and Chinese yuan trading sideways. The Aussie is showing gains after the country’s trade surplus widened.
Kenny Fisher
Currency paper


AUD/USD has posted slight gains on Thursday, recovering from the losses which marked Wednesday trade. In the European session, the pair is trading at 0.6896, up 0.26% on the day.

Australian Trade Balance Improves

Australia’s trade surplus widened significantly in September. The surplus came in at A$7.18 billion, up from A$5.93 billion a month earlier. The reading easily beat the estimate of A$5.10 billion. Given the ongoing U.S.-China trade war and weak global demand, this was a positive development, and AUD/USD has responded with modest gains.

Ahead – RBA Monetary Statement

The RBA will be back in the spotlight on Friday, as policymakers release the quarterly monetary policy statement. The bank held pat earlier in the week and maintained rates at 0.75%, but has slashed rates three times since May. Investors will be looking for clues with regard to future monetary policy – if the rate cut season appears over, the Aussie could respond with gains.

AUD/USD Technical Analysis

AUD/USD remains range-bound, but both support and resistance barriers remain vulnerable. Will we see a breakout before the end of the week? The pair has not been able to move past resistance at 0.6920, and is currently putting strong pressure on support at 0.6880. Below, we find support at 0.6840.

AUDUSD 1-Day Chart


USD/CNY has posted small losses on Thursday. In the European session, the pair is trading at 6.9912, down 0.08% on the day. The Chinese yuan continues to gain strength – USD/CNY has touched a low of 6.9985 on Tuesday, its lowest level since August 5.

Ahead – Chinese CPI

Chinese CPI has been pointing upwards since the first quarter of 2019 and reached 3.0% in September. The upward trend is projected to continue in October, with an estimate of 3.2%. Higher inflation levels point to increased economic activity and this is bullish for the Chinese yuan. There is a tentative release of Chinese trade balance on Friday.

USD/CNY Technical Analysis

USD/CNY continues to head lower and has declined by 1.0% since October 31. With the pair breaking below the symbolic level of 7.00 earlier in the week, I expect the downtrend to continue. The next support level is at 6.9930, which could feel pressure next week.

USD/CNY 1-Day Chart


After posting losses for three straight sessions, NZD/USD is flat in Thursday trade. In the European session, the pair is trading at 0.6367, up 0.04% on the day. There are no New Zealand events for the remainder of the week.


NZD/USD Technical Analysis

NZD/USD has moved lower this week, but has taken a breather on Thursday. In the Asian session, the pair tested support at 0.6360 for the first time since October 30. Below, there is support at 0.6330, which was last tested in mid-October. Traders should keep track of the 50-EMA, which remains very close to the pair’s current level.

NZD/USD 1-Day Chart

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.