The British pound continues to trade slightly below the key 1.30 level. The star performer on Tuesday is the New Zealand dollar, which has jumped over one percent following a hawkish rate statement from the New Zealand central bank.
GBP/USD has posted slight gains in the Wednesday session. The pair is currently trading at 1.2976, up 0.19% on the day.
There were some highly anticipated releases on Tuesday, but the lukewarm readings left investors shrugging their shoulders, as the pound showed little reaction. Preliminary GDP came in at a flat zero in the fourth quarter, matching the estimate. There was better news from the monthly GDP report, which showed a gain of 0.3% in December, edging above the estimate of 0.2%. This marked the indicator’s first gain since July.
On the manufacturing front, Manufacturing Production improved in December, with a gain of 0.3%. In November, the indicator declined by 1.7%. Still, this reading fell short of the estimate of 0.5%.
There is resistance at the key level of 1.300, with the 50-day EMA line following closely at 1.3010. On the downside, there is support at 1.2902. Lower, there is support at 1.2850. Below, The 200-day EMA is situated at 1.2828.
USD/CNY has steadied after losing ground for the past two days. Currently, the pair is trading at 6.9969, up 0.08% on the day. Investors are waiting for the release of New Loans sometime during the week. The indicator is expected to improve sharply to 3100 billion yuan in January.
AUD/USD has moved higher for a third straight day. Currently, the pair is trading at 0.6741, up 0.41% on the day. In economic news, Westpac Consumer Sentiment bounced back with a gain of 2.3% in February, after two straight declines. This strong reading followed the NAB Business Confidence remained in negative territory, as it ticked higher to -1, up from -2 points. This points to pessimism on the part of the business sector.
NZD/USD has posted strong gains on Wednesday. Currently, the pair is trading at 0.6469, up 1.04% on the day. The New Zealand central bank maintained the benchmark interest rate at 1.00%, but the bank’s rate statement was more hawkish than expected, which boosted the New Zealand dollar.
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.
