AUD/USD is showing little movement in Wednesday’s Asian session. Currently, the pair is trading at 0.6710, up 0.02% on the day.
Aussie at 10-year Low on RBA Fallout
The RBA rate cut was expected, but nevertheless the Aussie dropped 0.6% on Wednesday, and managed to fall to its lowest level in 10 years. The bleeding has stopped in Thursday trade, but investor sentiment remains bearish towards the Aussie. Weak global conditions continue to hamper the Australian dollar, and three rate cuts in four months is not the recipe for a stronger currency. We could see the downward trend continue during the week.
AUD/USD Technical Analysis
With AUD/USD posting strong losses on Tuesday, the line of 0.6760 has some breathing room in resistance. Support at 0.6710 is fluid, and this line could be tested during the day. Below, there is support at 0.6665.
Chinese banks are closed for a holiday for the remainder of the week, so USD/CNY is expected to remain flat throughout the day.
Yuan Slips to 3-Week Low
The dollar started the week with gains and with banks closed for a national holiday, for the rest of the week, the greenback should be able to hold onto these gains. Currently, USD/CNY is at its highest level since September 6. Chinese manufacturing PMIs for September pointed to ongoing weakness in the manufacturing sector, which has been hard-hit by the ongoing trade war with the United States.
USD/CNY Technical Analysis
The pair showed steady downward movement in the first half of September, but has since reversed directions and recovered much of these losses. On the upside, 7.1700 seemed safe just a few weeks ago, but has become more vulnerable as the dollar gains ground. On the downside, 7.1100 switched to support last week.
NZD/USD is trading sideways on Wednesday, after recording losses for four successive days. In the Asian session, the pair is trading at 0.6244, up 0.02% on the day.
NZ Dollar Sinks to 10-Year Low
The New Zealand dollar has posted more losses this week and has fallen to its lowest level since February 2009. The ANZ Business Confidence survey weakened in September, an indication the central bank’s 50-point slash in September has not increased business confidence. The key indicator dropped to -53.5, its lowest level since April 2009. Analysts expect business spending and hiring to weaken, which is bad news for the economy and will likely weigh on the NZ dollar.
NZD/USD Technical Analysis
The line of 0.6280 was active last week and is currently a resistance line. Below, 0.6240 was tested on Tuesday and remains fluid. There is support just below the 62 line, at 0.6190.
This article was originally posted on FX Empire
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