08-15-2019, 06:28 AM
Technical Overview of AUD/USD, USD/JPY and USD/CHF Currency Pair
AUD USD
AUD traded higher against USD and closed at 0.6747.
· AUD/USD maintaining bid tone as markets send mixed signals regarding risk.
· US yields hitting historic lows in Asia with 30-year yield below 2.0%.
· Bond market is pricing in strong chance of recession nL4N25B0GG.
· Despite moves in US Treasuries. S&P futures up over 0.40%.
· AUD/USD steady around 0.6775 - up 0.41% after better than expected Aus jobsnAZN0QH300.
· Unless bond market wrong, AUD/USD should struggle on global growth concerns.
· AUD/USD resistance at 0.6820/35 where daily highs converge with 38.2 fibo.
According to the Analysis, pair is expected to find support at 0.6738 and a fall through could take it to the next support level of 0.6721. The pair is expected to find its first resistance at 0.6794 and a rise through could take it to the next resistance level of 0.6811.
USD JPY
USD traded lower against JPY and closed at 105.89.
USD CHF
USD traded higher against CHF and closed at 0.9732.
AUD USD
AUD traded higher against USD and closed at 0.6747.
· AUD/USD maintaining bid tone as markets send mixed signals regarding risk.
· US yields hitting historic lows in Asia with 30-year yield below 2.0%.
· Bond market is pricing in strong chance of recession nL4N25B0GG.
· Despite moves in US Treasuries. S&P futures up over 0.40%.
· AUD/USD steady around 0.6775 - up 0.41% after better than expected Aus jobsnAZN0QH300.
· Unless bond market wrong, AUD/USD should struggle on global growth concerns.
· AUD/USD resistance at 0.6820/35 where daily highs converge with 38.2 fibo.
According to the Analysis, pair is expected to find support at 0.6738 and a fall through could take it to the next support level of 0.6721. The pair is expected to find its first resistance at 0.6794 and a rise through could take it to the next resistance level of 0.6811.
USD JPY
USD traded lower against JPY and closed at 105.89.
Retail Sales m/m reflect a change in the US retail sails in the reported month compared to the previous one. The indicator is calculated based on statistics received from 5,000 retail stores of different types and sizes, and the data are then extrapolated to the whole country.
The indicator is used for estimating inflation. Its growth may have a positive effect on dollar quotes.
According to the Analysis, pair is expected to find support at 105.70 and a fall through could take it to the next support level of 105.48. The pair is expected to find its first resistance at 106.44, and a rise through could take it to the next resistance level of 106.66.
USD CHF
USD traded higher against CHF and closed at 0.9732.
According to the Analysis, pair is expected to find support at 0.9712 and a fall through could take it to the next support level of 0.9697. The pair is expected to find its first resistance at 0.9762, and a rise through could take it to the next resistance level of 0.9777.
According to Citi Research report "With risk sentiment continuing to deteriorate by the week, investors may look to extend risk aversion trades into 2020 as:
(1) Worsening US – China trade tensions risk a disinflationary impulse from CNY heading towards 7.25 - 50;
(2) Possible risk of USD intervention by the US;
(3) Rising odds of a “No Deal” Brexit;
(4) Re-emergence of Italy political risk;
(5) Slowing global growth leading to central bank policy responses and a “race to the bottom” in rates sparking a currency war;
(6) Potential damage to US – Japan/ Europe trade relations should Trump impose tariffs on auto imports;
(7) 2020 - US presidential election year leaves scope for a more aggressive Trump;
(8) Tensions in HK, Iran, North Korea, now Argentina and India – Pakistan,"