EUR/USD turns flat amid subdued trading action
The US Dollar extended its recovery during early NA session, with the EUR/USD pair erasing tepid recovery gains and drifting into negative territory.Currently trading around 1.0430 level, testing session lows, the pair ran through fresh offers after repeatedly failing to decisively break through 1.0465-70 resistance area marking 23.6% Fibonacci retracement level of its post-ECB slide from 1.0839 to 1.0352 - 14-year low touched at the beginning of this week. Also on Thursday, the pair failed to build on to disappointing US income / spending data-led spike to 1.0500 handle and reversed majority of daily gains, albeit settled with moderate strength. The pair's recent price action clearly suggests that the recent leg of recovery was solely led by unwinding of short positions from near-term oversold conditions and ahead of holiday season, while the pair's strong bearish trend remains intact. Next in focus would be the release of new home sales and revised UoM consumer sentiment index from the US.On a sustained weakness below session low support near 1.0430 area is likely to pave way for additional slide towards 1.0400 handle, which if broken might continue dragging the pair initially towards retesting multi-year lows support near 1.0350 level and eventually towards 2003 yearly lows support near 1.0335 level. On the flip side, 1.0450-55 area now becomes immediate strong hurdle above which the pair is likely to make a fresh attempt towards reclaiming 1.0500 psychological mark.
GBP/USD fades upbeat UK data-led spike
The GBP/USD pair faded upbeat UK economic data bullish spike and is now heading back towards the lower end of daily trading range. Currently trading around 1.2255 region, the pair remained under some selling pressure for the fifth consecutive session. The pair's attempted a recovery from 7-week lows, in wake of better-than-expected final UK Q3 GDP and current account deficit readings, turned out to be short-lived amid renewed 'hard Brexit' concerns and mild US Dollar pull-back from lower levels. The UK Q3 GDP final arrived at 0.6% q/q vs 0.5% and 0.5% previous, while the current account deficit shrunk in Q3, coming in at £-25.5bln versus £-28.3bln expected, but failed to provide any immediate respite for the bulls. Later during NA session, new home sales data and revised UoM consumer sentiment index would now be looked upon for some short-term trading opportunities.Failure to hold session low support near 1.2245-40 region is likely to accelerate the slide towards 1.2200 handle before heading towards testing 1.2160 support area. On the upside, 1.2280 level now becomes immediate resistance and is followed by resistance near 1.2310-15 region. Momentum above 1.2310-15 resistance could get extended but might now be capped at 50-day SMA resistance near 1.2400 handle.
USD/CAD surges to five week high on dismal Canadian GDP
The USD/CAD pair caught fresh bids and built on to its momentum above 1.3500 handle to touch the highest level since Nov. 18 after disappointing Canadian GDP print. Currently trading around five-week high level of 1.3540, a big miss from monthly Canadian GDP print for October, released just a while ago, added on to Thursday's dismal CPI reading and was seen weighing heavily on the Canadian Dollar. In fact, the monthly GDP print came-in to show a contraction of 0.3%, falling below estimates pointing to a flat reading and worse than 0.3% growth recorded in the previous month. Moreover, a weaker sentiment surrounding oil markets, with WTI crude oil trading with losses in excess of 1%, is further driving flows away from the commodity-linked currency - Loonie. Next on tap would be US economic data that includes - new home sales data and revised UoM consumer sentiment index.A follow through buying interest above mid-1.3400s might continue to boost the pair further towards multi-month highs resistance near 1.3590 area (touched in Nov.) before the pair eventually breaks through 1.3600 handle and head towards testing its next major hurdle near 1.3650-55 horizontal zone.On the downside, 1.3515-10 area, closely followed by 1.3500 psychological mark, now becomes immediate support to defend. Failure to hold this immediate support is likely to trigger a profit-taking slide below 1.3480 horizontal support, towards its next support near 1.3420 level.
AUD/USD plunges below 0.7200 to hit fresh multi-month lows
The AUD/USD pair came under renewed selling pressure and accelerated its downslide in the past hour, dropping to its lowest level since late May.Currently hovering around 0.7170 region, possibilities of stops getting triggered below 0.7200 handle could have attributed to the pair's sharp slide in the past hour of trading.Moreover, news headlines (via Bloomberg) that Chinese President Xi Jinping is ready to see China's economic growth slowing below the government's 6.5% target might have also collaborated to the intense selling pressure around the major. Being Australia's biggest trading partner, economic slowdown in the world's second largest economy tends to weigh heavily on the Australian Dollar. Meanwhile, the US Dollar extended its bullish consolidative phase as growing prospects of faster Fed rate-hike actions in 2017 continues to underpin the greenback and is further denting demand for higher-yielding currencies - like the Aussie.Next in focus would be US economic releases - new home sales and revised UoM consumer sentiment index, later during NY session. The ongoing bearish momentum seems strong enough to drag the pair further towards May monthly lows support near 0.7150-45 region, which if broken opens room for continuation of the pair's near-term downward trajectory. On the upside, 0.7200 handle now becomes immediate resistance and any recovery beyond this immediate hurdle might now be capped at 0.7220-25 resistance area.
NZD/USD on brink of breaking below 0.6900 handle
The NZD/USD pair reversed early tepid recovery gains and has now move on the brink of breaking below 0.6900 handle, in response to resurgent greenback buying interest. Having facing strong rejection near 100-day SMA during mid-Dec., and subsequently breaking below the very important 200-day SMA, the pair now seems to have found some support around 0.6900 handle and was seen consolidating its recent sharp slide to 6-month low. The recovery, however, remains fragile and the pair even failed to benefit from Thursday's upbeat release of quarterly NZ GDP print.Moreover, the incoming US economic data have not been far worse than expected that could deteriorate the post-US presidential election well-establish US Dollar bullish trend and help the pair to register any meaningful recovery from multi-month lows. Next on tap would new home sales data and revised UoM consumer sentiment index from the US, which will be looked upon for short-term trading opportunities. Immediate downside support is pegged at 0.6882 (Dec. 20 low) below which the pair is likely to accelerate the slide towards 0.6820 support area with some intermediate support near 0.6850 level. On the upside, 0.692-25 area seems to have emerged as immediate resistance, which if cleared seems to boost the pair towards 0.6960 resistance en-route 0.7000 psychological mark.
Gold ticks higher, still negative for seventh consecutive week
Gold snapped three days of losing streak and edged higher on Friday, albeit remained closer to last week's 10-month low amid pre-Christmas lighter trading conditions.Currently hovering around $1132 level, the precious metal extended its range-bound bearish consolidative move and traded in negative territory for the seventh consecutive week, having recorded a slide of over 15% following Donald Trump's surprise victory in the US presidential election and hawkish Fed outlook.Meanwhile, a mild US Dollar retracement, which tends to benefit dollar-denominated commodities, is also lending some support to the metal's recovery on Friday. The recovery, however, lacked momentum as investors seemed convinced that aggressive fiscal stimulus by Trump administration would spur faster US economic growth and lift inflationary pressure. Upbeat economic outlook and higher inflation would eventually force the central bank to opt for tighter monetary policy stance and continue weighing on the non-yielding yellow metal. On the upside, the commodity is likely to confront resistance near $1136-37 region (Wednesday's high) above which the recovery could get extended towards $1143-44 resistance area. On the downside, the metal is likely to find support around $1127-25 region, which if broken is likely to drag it back towards multi-month lows support near $1122 ahead of $1110 support area.
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