AUD/USD, NZD/USD, USD/CNY – Pacific Currencies Trading SidewaysIt has been a quiet start on Tuesday, as the Australian, New Zealand and Chinese currencies were almost unchanged in the Asian session. I expect the lack of movement to continue throughout Tuesday.
AUD/USD is showing little movement on Tuesday, continuing the lack of activity which AUD to USD showed on Monday. In the European session, the pair is trading at 0.6799, down 0.08% on the day.
RBA Minutes – No Cuts for Now
The RBA minutes were dovish, but there were no surprises, so the Aussie’s reaction has been muted. Policymakers stated that they continue to monitor economic conditions and that there “was a case to wait and assess the effects” of the recent rate cuts. Nevertheless, policymakers were “prepared to ease monetary policy further if needed”, a sign that we could see another rate cut early next year.
AUD/USD Technical Analysis
After some volatility late last week, AUD/USD has settled down. The pair is putting pressure on resistance at 0.6807 and could test this line on Tuesday. Above, we find resistance is at the round number of 0.6900. On the downside, there is immediate support at 0.6770.
USD/CNY is unchanged in Tuesday trade. In the European session, the pair is trading at 7.0250, up 0.01% on the day. There are Chinese events on the schedule.
USD/CNY Technical Analysis
USD/CNY remains range-bound. The pair gained some ground on Monday and has pushed above the 7.02 level, but no barriers (in either direction) appear vulnerable at present. On the upside, USD to CNY is facing resistance at 7.0400. On the downside, there is support at the symbolic line of 7.000. Below, we find support at 6.9735.
NZD/USD continues to trade sideways. In the European session, the pair is trading at 0.6397, up 0.01% on the day. There was positive news on the inflation front, but not enough to shake up NZD to USD. The Producer Price Index (PPI) Input rose 0.9%, well above the estimate of 0.2%. PPI Output improved to 1.0%, marking a 4-month high.
NZD/USD Technical Analysis
On the technical side, there have not been any changes since Friday. There is immediate resistance at 0.6420. Above, we find resistance at 0.6490, protecting the round number of 0.6500. On the downside, the 50-EMA is situated slightly below the pair and is providing support. Close by, there is support at 0.6357. This is followed by support at the round number of 63.00.