Hey traders! Below are the latest forex chart updates for Wednesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
EUR/JPY
The pair will fail to break out from a major resistance line, sending the pair lower towards a key support line. Japan posted upbeat results on its recent reports. The third largest economy in the world expanded by 5.3% in Q3, beating the previous record of -7.9% and expectations of 5.0% growth. On an annual basis, the Japanese economy increased by 22.9%. Aside from this, the country’s Core Machinery Orders MoM and YoY reports posted better-than-expected numbers at 17.1% and 2.8%, respectively. Machine tool orders are also up by 8.0% against the -5.9% decline in the previous month. As for the EU, Germany’s imports and exports data showed disappointing results with 0.3% and 0.8% growths. Both reports failed to beat consensus estimates of 1.0% and 1.2%, respectively. Other factors affecting the single currency was the resurgence of COVID-19 in the region and the looming end of Brexit transition by January 2021.
USD/CAD
The pair broke down from a major support line, sending the pair lower towards the February 2018 low. Canada grew by 40.1% on an annualized basis in the third quarter of 2020. The growth surpassed Q2’s decline of 38.0%. In addition to this, Canadian Prime Minister Justin Trudeau showed his confidence in the country’s economy. The PM said he is expecting a major recovery in the upcoming year. On the other hand, the US is experiencing a slowdown due to the weak labor data. The country’s Nonfarm Payrolls report only added 245,000 in November, a 60% decline from October’s 610,000 figure. Meanwhile, expectations for the JOLTs Job Openings and the weekly initial jobless claims reports were bleak. For JOLTs October result, the figure is expected to add fewer job openings at 6.300 million. Meanwhile, analysts were expecting a higher number of claimants of unemployment benefits last week at 725,000.
NZD/USD
The pair will break out from the current resistance line to reach new high at another major resistance line seen at the 0.76000 price area. New Zealand continues to recover from the coronavirus pandemic. The Q3 data from the Manufacturing Sales Volume report showed an increase of 17.3% from the decline of -12.2% in the second quarter. Meanwhile, NZ plans to halt the massive increase in house prices, which could slow down the recovery in the short-term but will make the economy stable in the long-term, to prevent a bubble. In recent news, Fitch Ratings said a positive outlook upgrade in 2021 among economies is unlikely. The credit rating agency added that the coronavirus will continue to take a toll on the global economy. Among all industrialized and emerging economies, only Ivory Coast and New Zealand received a positive outlook from Fitch. The NZD will continue to outperform the greenback in coming sessions.
AUD/JPY
The pair will break out from a major resistance line, sending the pair higher towards December 2018 high. Westpac Consumer Sentiment report on Tuesday, November 08, inched higher from the previous month’s 2.5% result. The figure suggests a near-term recovery for the Australian dollar. In addition to this, the Business Confidence and Business Survey reports of the National Australian Bank (NAB) supported the upbeat outlook for the Australian economy. Figures came in at 12 points and 9 points, both of which are higher than October’s results of 5 points and 1 point, respectively. Furthermore, the gross domestic product of Australia advanced by 3.3% in the third quarter, lifting the country out of recession. The growth was driven by household consumption which grew by 8.0% in Q3 following a decline of -12.5% in the second quarter. Reserve Bank of Australia (RBA) Governor Philip Lowe said he is expecting to have a positive figure in Q4.
