AUD/USD, NZD/USD, USD/CNY – Asian Session Daily ForecastThe U.S. dollar is lower in early trading on Thursday. The Australian and NZ dollars have posted gains, and the Chinese yuan is also higher. We could see stronger movement in the currency markets in the North American session, with the release of U.S. consumer inflation reports.
AUD/USD has posted gains in Thursday trade. In the Asian session, the pair is trading at 0.6744, up 0.37% on the day.
Aussie Inflation Indicator Jumps
Australian inflation expectations jumped 3.6% in September, up sharply from 3.1% in the previous release. This marked a 6-month high and boosted the Aussie in early trading on Thursday. Traders should keep a close eye on U.S. consumer inflation reports, which will be released later on Thursday. The markets are expecting soft numbers, which could weigh on the Australian currency.
AUD/USD Technical Analysis
AUD/USD has posted gains on Thursday, reversing the downward trend which began late last week. There is immediate resistance at 0.6760. We could see the Aussie push past this stubborn resistance line during the week, but for now, the pair remains range-bound. Below, there is support at 0.6710.
The Chinese yuan continues to gain ground. In Thursday’s Asian session, USD/CNY is trading at 7.1129, down 0.26% on the day. Today’s key event is U.S. consumer inflation reports. Any unexpected readings could cause volatility for the pair. On Friday, China releases New Loans, which is expected to rise to 1350 billion yen ($190 million) in September.
USD/CNY Technical Analysis
The main trend is down and the pair has tested major support at 7.1100, for the first time since late September. If the yuan can break through this line, it could gather steam and move towards the next support line 7.0590. On the upside, 7.1700 has strengthened as the pair moves lower.
NZD/USD has posted considerable gains on Thursday. In the Asian session, the pair is trading at 0.6318, up 0.49% on the day.
Ahead – U.S. CPI, NZ Manufacturing Index
There are two fundamental indicators on Thursday which could affect the movement of NZD/USD. The U.S. releases consumer inflation reports, with soft gains expected. The headline release is projected to remain steady at 0.1%, while the core reading is expected to dip to 0.2%, down from 0.3% in the previous release. Later, New Zealand releases the Business NZ Manufacturing Index. The index has posted back-to-back contractions, as the manufacturing sector continues to sputter due to weak global demand and the U.S.-China trade war. Another contraction could send the New Zealand dollar to lower ground.
NZD/USD Technical Analysis
NZD/USD tested support at 0.6280 on Wednesday, but has reversed directions on Thursday. I continue to keep an eye on a Fibonacci level at 0.6357. This resistance line has held since mid-September, and a break above this level would mark a major breakthrough for the greenback. Above, we find resistance at 0.6430. On the downside, 0.6280 is providing support.