Good morning. Today we expect two rate decisions, which are both expected to let the rates unchanged. The focus on the current market situation may be on the USD, JPY, AUD and NZD. Nevertheless we hope you will enjoy this trading day and have good luck.
Market review
The AUD climbed to a 14-month high against the USD after Australian employment unexpectedly raised in September and the central bank increased interest rates, which increases demand for Australian assets. The pair climbed over 1 percent to 0.9024, which was the highest level since August 2008. According to the statistics bureau in Sydney, the number of employed people climbed about 40,600 last month from August 2008. The Jobless rate fell to 5.7 percent from 5.8 percent. Other high-yielding currencies like the EUR, GBP or the NZD climbed also versus the USD. The EUR/USD rose after economists expected that German industrial output expanded 1.8 percent in August following a 0.9 percent drop in July. The GBP climbed for a second day against the USD and reached a high at 1.6012 after economists said the BoE will keep interest rates at an all-time low of 0.5 percent. The ECB will also hold a policy meeting today, which is also expected to let the rates unchanged. The JPY climbed for a fourth day against the USD, after Japan’s Finance Ministry said today that the nation’s current-account surplus widened 10.4 percent to 1.171 trillion JPY ($13.2 billion) in August from a year earlier.
CAD/CHF
The CAD/CHF has been moving along a downward Fibonacci fan. As you can see the market entered the upper part of the fan and is trading on its highest level since the beginning of October. If the market doesn’t cross the red resistance line and the upper line of the Fibonacci fan, it may rebound back to the support of around 0.9500.
AUD/NZD
Today we may expect also a downturn recovery in the AUD/NZD pair. As we can see, the market has reached two strong resistance levels. The resistance levels are the horizontal line from the middle of September of around 1.22 and the bearish trend line, which has also been established during September. The pair could be overbought and may probably pull back towards the support line at around 1.20.
