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AUD/USD
AUD/USD is showing little movement for a second successive day. In Friday’s Asian session, the pair is trading at 0.6761, up 0.12% on the day.
Ahead – Soft Core Durables Goods Expected
With no Australian events to wrap up the week, key U.S. numbers could have a magnified impact on the movement of AUD/USD. Today’s schedule includes durable goods orders, personal spending and consumer confidence. I am keeping a close eye on core durable goods orders, as the markets are braced for a dismal reading of 1.1% in August. The indicator boasted a healthy gain of 2.1% in July, and a sharp drop could cause investment jitters and dampen risk appetite, which would weigh on the Australian dollar.
AUD/USD Technical Analysis
AUD/USD continues to hover close to 0.6760. This line has been under attack for much of the week and remains fluid. This trend will likely continue for the remainder of the day. Below, we find support at 0.6710. On the upside, the pair tested 0.6805 early in the week, but has since retreated to lower ground.
USD/CNY
USD/CNY has recorded small gains on Friday. In the Asian session, the pair is trading at 7.1465, up 0.09% on the day.
Yuan Dips to 3-Week Low
The dollar has been creeping higher this week, taking small steps and frequent breathers, but nonetheless pushing upwards. It has been a low-key rise, but USD/CNY has pushed above the 7.13 line for the first time since September 6. The fact that trade talks are back on between the U.S. and China after a lengthy lull has boosted the dollar. President Trump has weighed in, stating earlier in the week that a deal could be closer than people think. Trump’s rhetoric should, of course, be taken with a grain of salt, but further positive developments with regard to the trade war could boost the U.S dollar.
USD/CNY Technical Analysis
The pair showed steady downward movement in the first half of September, but has since reversed directions and recovered most of these losses. Keeping in mind that “the trend is your friend”, the pair could well continue to climb higher and put pressure on 7.1700. This major resistance line seemed safe just a few weeks ago, but has become more vulnerable as the dollar gains ground. On the downside, 7.1100 has assumed a support role after USD/CNY broke above it at the start of the week. Below, we find support at 7.0592.
NZD/USD
NZD/USD is trading sideways on Friday and seems content to call it a week. I don’t expect anything more than minor movement from the pair for the remainder of the day. In the Asian session, the pair is trading at 0.6296, down 0.04% on the day.