The commodity-linked currencies were broadly lower against the greenback. AUD/USD and NZD/USD lost 0.4% to 0.6873 and 0.6637, respectively, while USD/CAD gained 0.2% to 1.3063. Government data showed that China's GDP grew 6.0% in the year as expected in the fourth quarter.

The U.S. government bond prices declined further after the Treasury Department announced plans to sell 20-year government bonds later this year. The benchmark U.S. 10-year Treasury yield advanced to 1.834% from 1.809% Thursday. Today, the U.S. session may drive thin volatility in the wake of King Martin Luther's day holiday.

 

USD/JPY - Sideways Pattern Unchanged

The USD/JPY currency pair was moving sideways and struggled near the 110.00 as traders stuck between the on-going Libyan crisis and broad-based USD strength. As the pair initially responded to the risk-off market sentiment, which came due to bad news from Libya. As a result, the pair dropped to 110.05 from the Friday close range near the 110.15. As of writing, the USD/JPY currency pair is currently trading at 110.14 and is consolidating in the interval between the 110.08 - 110.22.

At the main news front, there was no lack of power show in the Middle East, and this time it's Libya that took trader's minds back to 2011. The oil-rich nation was experiencing a power play where one of the top leaders, KhalifaHaftar, recently blocked the country's exports by 800,000 barrels per day.

Moreover, the news came recently that Libya left Iran behind in intensifying the geopolitical risk to the global economy. However, Tripoli seems weak by the power in comparison to Iran.

However, despite this, the significant risk still surrounding crude oil prices after the forces loyal to KhalifaHaftar breached the ceasefire in Tripoli again and opened gun firing on Khallatat frontline.

On the other hand, the beginning of U.S. President Donald Trump's impeachment trial from Tuesday will also remain under the trader's eyes.

At the BOJ front, the Bank of Japan's 2-day meeting regarding monetary policy, which is scheduled to start today, the market is not expecting any surprises from the BOJ because nothing major has come after the last meeting in December.

While soft inflation will keep BOJ to continue its easy-money policies forward, the tone of the central bankers will be the key to observe in the minutes' statement. Moreover, Japan's November month Industrial Production, expected to remain stable at -8.1% and will be the key in the time of the U.S. markets' holiday. Whereas, the headlines related to Sino-US and Libya will be the key to watch.

USDJPY

 

USDJPY - Daily Technical Levels

Support

Pivot Point

Resistance

110.11

110.15

 

110.24

110.01

110.29

109.97

110.38

 

USD/JPY - Daily Trade Sentiment

The USD/JPY continues to consolidate at the top around 110.250, which is resistance to the USD/JPY near 110.250. On the downside, the USD/JPY pair is expected to gain support around 109.850. Violation of this support can drive more sales until 109.650.

The Stochastic is enduring below 50, which is implying bearish bias. Let's watch for bearish positions below 110.15 today to target 109.850 and 109.650.

 

USD/CAD - Sideways Trading Continues

The USD/CAD pair was closed at 1.30696 after placing a high of 1.30748 and a low of 1.30335. Overall the movement of USD/CAD remained bullish throughout the day.

The pair USD/CAD moved sideways during the early trading session on Friday but gained traction in late sessions and touched a high of 1.3075 level. It was all because of broad-based U.S. dollar strength and weak crude oil performance.

The U.S. Dollar Index, which gauges the value of the U.S. dollar against the basket of six currencies, posted highs on Friday. It rose to its highest since December 26 on Friday to 97.66 on the back of rising U.S. Treasury yields and robust macroeconomic data.

The U.S. Census Bureau announced on Friday that Housing Starts in December increased to 1.61M from the expected 1.38M and supported the U.S. dollar. The inflation expectations also rose to 2.5% despite the contraction in Industrial Production by 0.3%.

The strong U.S. dollar across the board pushed USD/CAD prices on Friday near the 1.3075 level. The weakness of Crude oil prices also supported it.

The barrel of West Texas Intermediate (WTI) Crude Oil failed to increase on Friday on the back of weekly data published by Baker Hughes. According to data, the number of active oil rigs in the United States increased to 673 from 699, and this weighed on crude oil prices, which in turn made it difficult for commodity-linked currency- Loonie to gain traction in the market.

The weak Canadian Dollar, due to decreased prices of crude oil, added in the upward movement of USD/CAD pair on Friday. On the other hand, the Foreign Securities Purchases for November showed a massive decline to -1.75B against the expectations of 12.32B and weighed heavily on Canadian Dollar. The weaker than expected macroeconomic data from Canada further supported the bullish trend of the USD/CAD pair.

USDCAD

 

USD/CAD- Daily Technical Levels

Support

Pivot Point

Resistance

1.3060

1.3064

 

1.3069

1.3055

1.3073

1.3051

1.3079

 

USD/CAD- Daily Trade Sentiment

The USD/CAD is consolidating in a narrow trading range of 1.3095 - 1.3040. Traders seem to look for a solid reason to determine the bullish or bearish trend in the USD/CAD.

The formation of candles beneath 1.3040 can lead USD/CAD towards 1.3000 and 1.2950, while bullish breakout of 1.3095 can drive buying until 1.3150. Let's do choppy trading until breakout occurs.

 

AUD/USD – Bullish Channel Breakout

The pair AUD/USD was closed at 0.68710 after placing a high of 0.69108 and a low of 0.68704. Overall the pair AUD/USD moved in a bearish trend that day.

The pair AUD/USD dropped to its five days lowest point near 0.68700 level on the back of rising U.S. dollar demand in the market. The pair finished its week almost where it was started because of the absence of any dominant trend this week. The prices seesawed between gains and losses throughout the week due to U.S. dollar weakness in the early days of the week.

Aussie is affected by the Chinese data, and on Friday, the upbeat data from China also failed to move the AUD/USD pair in a bullish trend. At 7:00 GMT, the Chinese quarterly Gross Domestic Product (GDP) was released, which came in line with the expectations of 6.0%. It was one of the reports which were under the focus of the attention of traders on Friday.

However, despite no change in GDP, the Industrial Production in China for 2019 showed an increase of 6.9%, which was expected to be 5.9% and supported the Australian Dollar.

An increase in industrial production was a good sign for Australian Dollar, but it failed to post gains for AUD/USD pair on Friday as the U.S. dollar was active in the market.

The U.S. dollar on the back of upbeat economic data remained strong throughout the market in the last two days of the week. The strong Retail Sales on Thursday and the influential Housing figures and Inflation Expectations from the United States rose U.S. dollar Index. The U.S. Dollar Index rose to its highest since26 December to 97.66 level on Friday and dragged the AUD/USD prices.

The AUD/USD pair prices also suffered because, despite the signing of a phase-one trade deal between China & the U.S., the uncertainty persisted in the market related to global growth. The growth of the World's economy was related to the tariffs imposed by both U.S. & China on each other products.

But when the details of the phase-one trade deal revealed that tariffs were not rolled back and they were still unchanged, the market's expectations for global growth fell and weighed on Australian Dollar. The less demand for Aussie also caused the bearish trend for AUD/USD pair on Friday.

However, on the positive note, U.S. President Donald Trump announced that in Phase-two of a trade deal between the U.S. & China, the rolling back of tariffs would be discussed, and the negotiations for that will be started soon.

AUDUSD

 

AUD/USD - Technical Levels

Support

Pivot Point

Resistance

0.6875

0.6879

 

0.6886

0.6867

0.6891

0.6863

0.6898

 

AUD/USD - Daily Trade Sentiment

The AUD/USD has violated the bullish channel, which was supporting the AUD/USD around 0.6885. Recently, the AUD/USD pair has closed strong bearish candles on the 4-hour chart, which are suggesting odds of selling trend in the Aussie. On the lower side, the pair can exhibit selling until 0.6840, while the closing of candles above this level can help us capture a buy position. Consider taking sell trades below 0.6879 today.

 


 

Try Secure Leveraged Trading with EagleFX!

Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex Analysis

Editors’ Picks

EUR/USD in a phase of bearish consolidation around 1.0850, US NFP eyed

With the US dollar bulls taking a breather following the latest upsurge, EUR/USD is licking its wounds ahead of the European open. The spot trades close to the six-day lows reached Thursday at 1.0820, as it awaits the critical US data for the next direction.

EUR/USD News

GBP/USD: Weaker below 1.2400 ahead of UK PMI, US data

GBP/USD bears the burden of broad US dollar strength while waiting for fresh impulse. UK plans to issue coronavirus “immunity passports”. Final reading of the UK’s March PMIs, US jobs report and ISM Non-Manufacturing PMI will be in focus.

GBP/USD News

Forex Today: Coronavirus risks loom, USD bulls take a breather ahead of US Payrolls

The relentless rise in the coronavirus cases world-wide continues to keep the investors on the edge. The US dollar continued to enjoy the safe-haven flows, as the Asian equities turned negative alongside the US stock futures.

Read more

WTI: Depressed below $24.00 as traders fail to cheer hopes for production cut

WTI fails to keep buyers hopeful as fears of coronavirus outbreak renew. China’s Caixin Services PMI came in positive, US President Donald Trump reiterated hopes for Saudi-Russian pact for an oil production cut. US economic docket, virus news will be the key for near-term direction.

Oil News

Gold snaps two-day recovery, stays above $1,600, as trade sentiment sours

Gold fails to extend the previous recovery gains amid fresh challenges to risk. Wuhan Chief cited coronavirus resurgence risk, Washington Governor extends lockdown. S&P keeps US rating/outlook intact, expects a recovery in 2021.

Gold News

Forex Majors

Cryptocurrencies

Signatures