The Japanese yen declined against the US dollar even after relatively strong economic data from the country. According to the Japanese statistics bureau, the core machinery orders rose by 1.7% in November. This was better than the expected decline of 0.2%. On an annualised basis, the orders declined by 11.3%, which was better than the expected decline of 15.2%. Further data showed that the country’s factory-gate prices, also known as the PPI, rose by 0.5% in December. It fell by 2.2% on an annualised basis, which was better than the previous decline of 0.1%.
The Australian dollar rose against the US dollar after the relatively strong economic data from China. According to the country's statistics bureau, its imports increased by 6.5% in December after rising by 4.5% in the previous month. Exports rose by 18.1% leading to the trade surplus to rise to more than $78 billion dollars. Foreign direct investment in the country also increased. These numbers are better for the Aussie because of the close trading relationship between China and Australia.
The price of cryptocurrencies rallied in overnight trading as the market rushed to buy the recent dips. Bitcoin rose by more than $4,000 to $37,279 while Ethereum rose by 77 points to $1,120. Other currencies like Bitcoin Cash, Cardano, and Litecoin also rose. This is further evidence that there is a demand for these currencies. Separately, the market will later react to a speech by Jerome Powell, the head of the Federal Reserve.
The EUR/USD pair declined in the overnight session as traders bet on the rebound of the US dollar. It is trading at 1.2172, which is lower than yesterday's high of 1.2220. It is also slightly higher than the vital support of 1.2137. The price is also slightly lower than the 15-day and 25-day exponential moving averages while the Relative Strength Index has continued falling. Therefore, the pair will likely continue falling ahead of speeches by Jerome Powell and Joe Biden.
The AUD/USD pair rose slightly after the strong trade data from China. It is trading at 0.77, which is the highest it has been since April 2018. On the daily chart, the price is above the short and longer moving averages. However, the Relative Strength Index and the MACD are showing some bearish divergence. Therefore, while the upward trend is likely to continue, there's also a possibility of a bearish reversal in the near term.
The GBP/USD is holding steady at 1.3636, which is just below yesterday's high of 1.3656. On the daily chart, the price is slightly above the 25-day weighted moving average and the rising trendline. The pair is also slightly below the upper side of the Bollinger Bands while the Relative Strength Index is also rising. The pair will likely continue rising as bulls target the resistance at 1.3700.
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