AUD/USD, NZD/USD, USD/CNY – Limited Movement at Start of Week

AUD/USD

AUD/USD is steady on Monday, after sustaining considerable losses on Friday. In the European session, the pair is trading at 0.6857, unchanged on the day. There are no Australian events on the schedule. On Tuesday, Australia releases Westpac Consumer Sentiment, which has posted four declines in the past five months.

AUD/USD Technical Analysis

AUD/USD remains range-bound, but both support and resistance barriers remain vulnerable. On the upside, there is resistance at 0.6920. On the downside, 0.6880 remains under pressure. Below, we find support at 0.6840. The 50-EMA line remains relevant and is currently at 0.6834. If the pair breaks below this line, it could continue downwards and push below the 0.6700 level.

USD/CNY

USD/CNY has posted slight gains on Monday. In the European session, the pair is trading at 7.0070, up 0.16% on the day. On the weekend, USD/CNY touched a low of 6.9678, its lowest level since August 5.

CPI Climbs, New Loans Ahead

New Chinese bank loans will be closely watched by investors, as this is a major indicator that could affect the movement of USD/CNY. New bank loans rose to 1690 billion yuan ($241 billion) in September, above expectations. However, the markets are braced for a sharp drop in October, with an estimate of 800 billion yuan ($114 billion). On Saturday, Chinese CPI jumped to 3.8% for October, much higher than the estimate of 3.2%. It was the highest reading since 2012.  Higher inflation levels point to increased economic activity and this is bullish for the Chinese yuan.

USD/CNY Technical Analysis

USD/CNY remains at low levels and has declined by 1.0% since October 31. The pair continues to hover close to the symbolic level of 7.00. On the upside, the 50-EMA, which is at 7.0592, is acting as resistance.

On the downside, there is support at 6.9735 in the Asian session and this line could break next week. Below, we have support at 6.9500.

NZD/USD

NZD/USD has started the week on a positive note, after posting considerable losses on Friday. In Monday’s European session, the pair is trading at 0.6349, up 0.29%.

There are no major New Zealand releases on Monday. On Tuesday, we’ll get a look at Inflation Expectations, which is a useful gauge for predicting actual inflation numbers. In Q2, the indicator dipped to 1.86%, its lowest level since 2016.

NZD/USD Technical Analysis

NZD/USD is currently range-bound. There is immediate resistance at 0.6360, and this line could be tested at any time. On the downside, there is support at the round number of 0.6300, which was last tested in mid-October. I continue to monitor the 50-EMA, which remains relevant. Currently, the 50-EMA is at 0.6366, acting as short-term resistance.