In This Article:
AUD/USD
AUD/USD has steadied on Thursday, after recording strong losses on Wednesday. In the Asian session, the pair is trading at 0.6748, down 0.02%. On Wednesday, the pair fell 0.71%, its worst daily showing since mid-August.
Ahead – U.S. GDP
With no Australian releases on the schedule, investors will be monitoring U.S. GDP, which can be viewed as a report card for the U.S. economy. Growth in the second quarter is expected to slip to 2.0%, compared to 3.1% in the previous quarter. The second estimate for GDP came in at 2.0%, and no change is expected in the third estimate. Still, given that this is one of the most important economic indicators, traders should be prepared for stronger movement from the Aussie in the North American session.
AUD/USD Technical Analysis
The U.S. dollar posted gains across the board on Wednesday and pushed the Aussie below support at 0.6760. This is an important development, as this line had held since September 3. The pair has taken a pause on Thursday, but the downward trend could resume. The next support line is at 0.6710. On the upside, 0.6805 has been under pressure, but has some breathing room, with AUD/USD beating a retreat.
USD/CNY
USD/CNY is trading sideways on Thursday. In the Asian session, the pair is trading at 7.1258, down 0.08% on the day.
Trade Talks to Resume
There is some optimism in the markets as the U.S. and China announced that trade talks will resume in October. U.S. President Trump, who seems to take on the role of “bad cop, good cap” when he talks about China, sounded optimistic on Wednesday, saying a deal could be closer than people think. Investors should take Trump’s comments with a grain of salt, but the fact that the talks are back on could cause some movement in the pair.
USD/CNY Technical Analysis
USD/CNY broke through resistance at 7.110 on Monday and has managed to stay above this line for most of the week. Traders should keep in mind that the pair broke through this line in mid-September but then retreated. If USD/CNY can consolidate these gains this time around, the pair can next set its sights on 7.1700, a major resistance line. On the downside, there is support just below 7.600, at 7.0592.
NZD/USD
NZD/USD has reversed directions on Thursday and has started the day with gains. In the Asian session, the pair is trading at 0.6296, up 0.38% on the day.
Kiwi Dips on Dovish NZ Central Bank
The New Zealand central bank maintained the benchmark rate at an even 1.0% Wednesday. This decision had been priced in by the markets. However, the NZ dollar still fell 0.70% after the bank’s policy meeting, as the bank said it was keeping the door open to further rate cuts if needed. The bank has not been shy to act, as the markets learned in August, when rate-setters slashed rates from 1.5% to 1.0%. The low rate and dovish stance of the bank means that the NZ dollar is unlikely to get any help from current monetary policy.