The British pound has been inching lower, as the currency struggles to remain above the key 1.30 level.
GBP/USD has posted slight losses for a second straight day, as the pair finds itself jus above the key 1.30 line, which has psychological significance. Currently, the pair is trading at 1.3027, up 0.23% on the day. There are no major British events on the schedule.
Investors are keeping a keen eye on the Bank of England, which will release the monthly benchmark rate on Thursday. No change is expected in the current rate of 0.75%, but policymakers have been hinting at a rate cut, with the manufacturing sector in decline and the economy releasing lukewarm numbers. A dovish rate statement could sour investors and push the pound to lower ground.
The line of 1.3100 remains relevant and is the next resistance line. This is followed by resistance at 1.3150. On the downside, the pair is putting strong pressure on 1.3000, a major support level. Below, there is support at 1.2950.
USD/CNY is unchanged on Tuesday, as the pair is trading at 6.9363. In economic news, the CB Leading Index posted a decent gain of 1.4.% in December.
AUD/USD fell lose to one percent on Monday, as the woes continue for the Aussie. The pair is currently trading at 0.6756, down 0.06% on the day. In the Asian session, the pair dropped to 0.6747, its lowest level since mid-October. In economic news, NAB Business Confidence dropped to -2, its first reading in negative territory since 2013.
NZD/USD mimicked the Aussie on Monday, falling close to one percent. Currently, the pair is trading at 0.6534, down 0.13% on the day. The pair remains under pressure and has fallen to its lowest level in two months.
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.