Market Update (12/8/2020): EUR/USD, GBP/USD, USD/JPY, AUD/USD
After weeks of rally, EUR/USD finally shows correction movement, on Asia session this morning it opens with 1.1763 and fell to the current 1.1720. Today’s Support is at 1.1706 and Resistance at 1.1791.
This bearish trend is due to US President Trump’s statement on optimistic US economic recovery and hints of tax cuts for middle-income families. Plus, better than expected US PPI figure brings a stronger USD bullish effect that overwhelms the EUR bullish effect of Germany’s positive Economic Sentiment data.
German — German ZEW Economic Sentiment
US — PPI (Producer Price Index)， Core CPI, Crude
GBP/USD opened with 1.3075, tested the 1.3097 Resistance but failed and fell to 1.3029.
Today’s Support is at 1.3030 and Resistance at 1.3105.
GBP’s 2-week long bullish trend halted as mixed UK employment data released and Dollar’s appreciation. Today will be a busy day for the UK as several crucial data reports scheduled to be released, including GDP, industrial production, manufacturing production, and total business investments.
UK – GDP, Manufacturing Production, Industrial Production, Total Business Investments
The pair opened with 106.56, slightly corrected to 106.42 then ascends to 106.73. Today’s Support is at 106.10 and Resistance at 107.00
USD/JPY has been showing strong recovery these two weeks, higher USD yields and positive sentiment on US recovery. Japan’s economy is suffering from the tax increase, rapidly rising dept and Japanese investors moving to invest in foreign assets.
JP – n/a
AUD/USD experiences huge decline these few days, this morning it opened with 0.7153 and slide drastically to 0.7118. Today’s Support is at 0.7131 and Resistance at 0.7176.
AUD’s past bullish trend was due to growing exports to China, is the second-largest gold producer in the world and weakening USD. However, this week Australia economy faces challenges as Melbourne enters a second lockdown, falling home loan value and disappointing employment data.
AU – Employment Change, Unemployment Rate, RBA Governer Statement
Data from trading view, fxstreet , dailyfx
Date &time according to tradingview UTC+8
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