Market Update (1/7/2020): EUR/USD, GBP/USD, USD/JPY, AUD/USD
EUR is losing its gains to USD yesterday, the day opened with 1.1238, slightly lower than yesterday’s height of 1.1261, gradually declined to session low of 1.1215 and recovered to 1.1227. Today’s Support is at 1.1215 and Resistance at 1.1251.
Germany’s Retail Sales and China’s Caixin Manufacturing PMI show good figure than expected, giving a small boost to recover from its decline. Yet continuous fear over a global outbreak of another wave of coronavirus cases has increased market demand for safe-haven currencies.
GBP/USD opened with 1.2368 and tested the resistance at 1.2401, but fell to session low of 1.2359 shortly and recovered to 1.2379. Today’s Support is at 1.2359 and Resistance at 1.241.
GBP had been bearish versus USD for a long time, except yesterday’s small recovery when US Consumer Confidence boosted risk sentiment and lowered demand for USD. However, nothing really fundamentally changes the trade talk between UK and EU to make any substantial boost for GBP.
The pair opened with 107.77, shot to session high of 108.16, then fell to 107.57. Today’s Support is at 107.64 and Resistance at 108.10.
Yesterday’s Japanese Tankan Manufacturing data shows pessimistic opinion on Japan’s industry. Added with China’s positive Caixin Manufacturing PMI. This causes Yen’s decline as a safe-haven asset today morning.
AUD/USD opened with 0.6891 and continued on the rise to 0.6900 area after a short fall to 0.6886 that quickly recovered. Today’s Support is at 0.6852 and Resistance at 0.6934
The pair lacked monumental news to set a firm direction for the trend, and seesawed around the 0.6900 area. Disappointing Building Permits released data from Australia were offset by China’s Caixin Manufacturing PMI. Lingering fears over the coronavirus in the global markets sustained the demand for USD, capping further gains for the pair.
Data from trading view, fxstreet
Date & time according to CPM MT4 server