EUR/USD
The EUR rose 0.53% against the USD and closed at 1.2446. Yesterday, the ECB Executive Board member, Benoit Coeure urged governments of the Euro-zone member nations to introduce structural reforms in order to promote growth and overcome the period of low inflation in the Euro area. In the US, the budget deficit fell to $56.82 billion in November, while markets expected the nation’s budget deficit to fall to $65.00 billion. The pair is expected to find support at 1.2381, and a fall through could take it to the next support level of 1.2306. The pair is expected to find its first resistance at 1.2513, and a rise through could take it to the next resistance level of 1.2571. Trading trends in the Euro today are expected to be determined by Germany’s crucial CPI data, scheduled in a few hours. Meanwhile, investors would closely monitor the US retail sales and weekly initial jobless claims data, scheduled later today.
GBP/USD
GBP rose 0.27% against the USD and closed at 1.5717, after Britain’s total trade deficit dropped more than anticipated to £2.02 billion in October. Separately, the BoE’s Monetary Policy Committee Member, Ian McCafferty opined that the central bank should start increasing its benchmark interest rate sooner rather than later and keep in mind that the hike should be “limited” and “gradual”. Yesterday, the British Chambers of Commerce projected the UK economy to grow 3% this year, as compared to its earlier projection of 3.2%; however the growth would be at its fastest pace in seven years. Earlier today, the RICS house price balance in the UK dropped to a reading of 13.0 in November, compared to market expectations of a drop to a level of 15.0. In the previous month, the house price balance had recorded a reading of 20.0 The pair is expected to find support at 1.5655, and a fall through could take it to the next support level of 1.5595. The pair is expected to find its first resistance at 1.5767, and a rise through could take it to the next resistance level of 1.5818. Amid no economic releases in the UK today, market sentiment would be governed by global macroeconomic news.
USD/JPY
The USD weakened 1.41% against the JPY and closed at 117.94. Overnight data indicated that Japan’s machine orders retreated more than expected 6.4% on a monthly basis in October, against market expectations of 1.7%. Overnight data indicated that Japan’s machine orders retreated more than expected 6.4% on a monthly basis in October, against market expectations of 1.7% decline and following an advance of 2.9% registered in September. Additionally, the nation’s tertiary industry index eased 0.2% on a MoM basis in October, in line with market expectations and after registering a rise of 1.3% in the preceding month.
The pair is expected to find support at 117.13, and a fall through could take it to the next support level of 116.21. The pair is expected to find its first resistance at 119.28, and a rise through could take it to the next resistance level of 120.51.
AUD/USD
The AUD strengthened 0.23% against the USD to close at 0.8319. Early morning data indicated that Australia’s unemployment rate climbed to 6.3% in November, at par with market estimates and after advancing 6.2% in the previous month. Meanwhile, number of employed people in the nation climbed more than expected by 42.7 K in November, against market expectations to add 15.0 K jobs and following a revised increase of 13.7 K registered in October. In other economic news, Australia’s consumer inflation expectation eased to 3.4% in December, after registering a level of 4.1% in the previous month. The pair is expected to find support at 0.8281, and a fall through could take it to the next support level of 0.8231. The pair is expected to find its first resistance at 0.8380, and a rise through could take it to the next resistance level of 0.8428.
XAU/USD
Gold prices traded lower by 0.28% against the USD at 1227.70 per ounce, reversing its previous session gains. The pair is expected to find support at 1224.03, and a fall through could take it to the next support level of 1217.76. The pair is expected to find its first resistance at 1237.73, and a rise through could take it to the next resistance level of 1245.16.
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