The dollar's value, measured against a basket of its six major counterparts, showed only modest growth, hovering near 102. On Thursday morning, the US currency was trading higher within a narrow range between 101.8 and 102.1.
Technically, the US dollar index maintains a bearish trend. Consequently, its trajectory might continue towards the support level at 101.4. The nearest resistance is around 102.6. The primary catalyst for the dollar's current weakness lies in Europe.
Yesterday's concurrent announcements from four major regulators – the Eurozone, the UK, Switzerland, and Norway – stated their intention to maintain their prime interest rates at record-high levels for the foreseeable future. This stance placed the US dollar at a disadvantage against the currencies of these regions, particularly in light of the Federal Reserve's dovish outlook.
In the early hours of Friday morning, the dollar/yen pair was predominantly driven by bulls, briefly touching the 142.4 mark. Consequently, the pair found itself at a crossroads, with nearly equal prospects of either advancing towards the resistance level at 142.5 or retreating towards the support level at 141.5.
On one side, the anticipation that the Bank of Japan might abandon its negative interest rates policy by December 19th has largely diminished. Conversely, Japan's political landscape is currently marred by a financial scandal involving the country's ruling party. This scandal has led to the ousting of several ministers, causing a significant destabilization within the government.
Moreover, the yen continues to find support from the potential of a long-term shift in the Bank of Japan's monetary policy. Meanwhile, the possibility of a weakening US dollar also remains a relevant factor, especially considering the pair's sharp decline from the 146 level on December 13th.
Amidst these divergent factors influencing Asian trading, the yen's volatility has intensified, resulting in an expanded price range between the support at 141.5 and resistance at 142.5. Such pronounced fluctuations in the forex market tend to provoke anxiety among Japan's financial policymakers.
Today, Japan's finance minister reiterated that the authorities were "firmly watching" currency market moves. "It is important that exchange rates move stably, reflecting fundamentals," Shunichi Suzuki said, repeating a familiar statement.
The trading sessions on December 13th and 14th marked the beginning of a notable upward trend for the Australian dollar, propelling it to its highest levels in five months. Since that surge, the pace of the aussie's appreciation has moderated. Over the last 24 hours, the aussie/dollar pair has been hovering within a narrow range between 0.669 and 0.673.
Encouraging economic data from China has been a key driver, bolstering bullish sentiment in the pair. This positive momentum could potentially push the aussie towards the resistance level of 0.681. Conversely, should the US dollar gain strength, the pair may test the support levels at 0.667 and 0.661.
The Antipodean currencies, known for their sensitivity to fluctuations in oil prices, have strengthened today, buoyed by rising Brent and WTI crude. In addition, the New Zealand dollar appreciated positive news from China, trading higher within a daily range of 0.619-0.622.
Moreover, the bullish trend remains intact, suggesting potential further appreciation of the New Zealand dollar from its current level of 0.6222. It could aim for the resistance levels of 0.6266 or possibly even 0.630. Notably, the US is set to release another set of crucial economic data today. This upcoming release could significantly alter the landscape for the US dollar and its currency pairs, potentially impacting their current trajectories.
00:00 Intro
00:47 PBC injects net liquidity of 800 billion yuan
01:29 CHINA RETAIL SALES YOY
01:51 CHINA INDUSTRIAL PRODUCTION
02:09 USDX
03:26 USD/JPY
05:06 Shunichi Suzuki
05:23 AUD/USD
06:21 NZD/USD
https://www.instaforex.com
FX Analytics - https://www.instaforex.com/forex_anal...
Forex Calendar - https://www.instaforex.com/forex_cale...
Forex TV from InstaForex - https://www.instaforex.com/instaforex_tv
Forex charts - https://www.instaforex.com/charts
Instant account opening - https://www.instaforex.com/fast_open_...
Forex Trading Contests - https://www.instaforex.com/forex_cont...
List of official InstaForex blogs:
/ instaforex
/ instaforex
/ instaforex
#forex_news # asian_session #instaforex_tv
Информация по комментариям в разработке