News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here: https://t.co/h7BKTd2J8N https://t.co/ukOW0dWJxf
  • Beautifully put. https://t.co/0fBsmUH6Pb
  • Gold prices could claw back lost ground ahead of the non-farm payrolls report for November, buoyed by a dovish FOMC, falling real yields and rising inflation expectations. Get your $XAUUSD market update from @DanielGMoss here:https://t.co/3mqut0yQIQ https://t.co/nfyycibwKM
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/UWnLJHVPN4
  • Rather than focusing on earning a specific number of pips per day, traders need to focus on what can be controlled. In trading terms this relates to following a strategy perfectly, with no emotion or hesitation. Learn more here: https://t.co/6ZH026QLRN https://t.co/JJIyKh8r1l
  • That if you’re offended by what someone says on Twitter and that ruins your day, you live an extremely lucky life to be able to have that be your biggest problem for the day. https://t.co/H9KQjR3ViK
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/tl54v6sKkX
  • Moving averages are extremely popular due to its easy-to-use nature and multitude of uses when trading. What are some popular moving averages and how can you use them? Find out: https://t.co/ik0wQ3MLGE https://t.co/heAYoTMDeR
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:https://t.co/ZNs4Qi8ieG https://t.co/UqZBBPZiOl
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/rChAkNqPL2
Chinese Data Eases Growth Concerns- USD Suffers as Risk Picks Up

Chinese Data Eases Growth Concerns- USD Suffers as Risk Picks Up

2012-01-17 14:37:00
Michael Boutros, Strategist
Share:

Daily Winners and Losers

Chinese_Data_Eases_Growth_Concerns-_USD_Suffers_as_Risk_Picks_Up_body_Picture_2.png, Chinese Data Eases Growth Concerns- USD Suffers as Risk Picks UpChinese_Data_Eases_Growth_Concerns-_USD_Suffers_as_Risk_Picks_Up_body_Picture_3.png, Chinese Data Eases Growth Concerns- USD Suffers as Risk Picks UpChinese_Data_Eases_Growth_Concerns-_USD_Suffers_as_Risk_Picks_Up_body_Picture_4.png, Chinese Data Eases Growth Concerns- USD Suffers as Risk Picks Up

The Australian dollar is the top performing currency against a weaker greenback in early US trade with an advance of 0.83% on the session. Stronger than expected Chinese data overnight fueled a risk rally that carried over into European trade as growth concerns from the Asian juggernaut temporarily eased. Industrial production, real GDP, and retail sales figures all topped consensus estimates supporting the argument that China has effectively achieved a soft landing. Accordingly, risk has gone back on the offensive with equity markets and higher yielding currencies outperforming across the board.

The AUD/USD pair breached key resistance at the 61.8% Fibonacci extension taken from the December 29th and January 8th troughs at 1.0355 before rebounding off soft resistance at 1.0450. The aussie is likely to remain well supported throughout the US session as markets continue to rally on eased growth concerns. Interim support for the pair rests at 1.0375 backed by the 1.0355, 1.0333, and the 50% extension at 1.0315. Topside resistance now stands at the 76.4% extension at 1.0405 with subsequent ceilings seen at 1.0420 and 1.0450. Overnight traders will be eyeing data out of Australia with the Westpac consumer confidence surveys and new motor vehicle sales on tap.

Key Levels/Indicators

Level/Indicator

Level

200-Day SMA

1.0409

100-Day SMA

1.0173

50-Day SMA

1.0124

2011 AUD High

1.1079

Upcoming Events

Date

GMT

Release

Expected

Previous

1/17

23:30

Westpac Consumer Confidence (JAN)

-

-8.3%

1/17

23:30

Westpac Consumer Confidence Index (JAN)

-

94.7

1/18

0:30

New Motor Vehicle Sales (MoM) (DEC)

-

-0.7%

1/18

0:30

New Motor Vehicle Sales (YoY) (DEC)

-

2.9%

Chinese_Data_Eases_Growth_Concerns-_USD_Suffers_as_Risk_Picks_Up_body_Picture_5.png, Chinese Data Eases Growth Concerns- USD Suffers as Risk Picks UpChinese_Data_Eases_Growth_Concerns-_USD_Suffers_as_Risk_Picks_Up_body_Picture_6.png, Chinese Data Eases Growth Concerns- USD Suffers as Risk Picks Up

The Japanese yen is the weakest performing currency ahead of the open with the low yielder falling against all its major counterparts. As risk appetite improves the “haven” currency is likely to remain under pressure as investors jettison the yen in favor of higher yielding, growth linked assets. Against the dollar, the yen is only off by a mere 0.04% as yen losses modestly outpace those of the greenback. Overnight the pair made fresh 2012 lows below 76.60 before quickly pulling back to trade above the 76.80 level. We continue to like this pair higher on risk-on days with interim resistance now eyed at the 23.6% Fibonacci extension taken from the November 18th and January 4th troughs at the 77-figure backed by the 38.2% extension at 77.25 and the 50% extension at 77.45. Support rests at 76.60 with a break below eyeing subsequent floors at 76.40 and 76.15. Again we note that yen advances are likely to remain tempered on intervention concerns as a stronger yen continues to weigh on Japan’s export driven economy. Overnight traders will be eyeing data out of the isle-nation with industrial production and capacity utilization figures on tap.

Key Levels/Indicators

Level/Indicator

Level

200-Day SMA

78.56

100-Day SMA

77.14

50-Day SMA

77.40

2011 JPY High

75.50

Upcoming Events

Date

GMT

Release

Expected

Previous

1/18

4:30

Industrial Production (MoM) (NOV F)

-

-2.6%

1/18

4:30

Industrial Production (YoY) (NOV F)

-

-4.0%

1/18

4:30

Capacity Utilization (MoM) (NOV F)

-

4.1%

---Written by Michael Boutros, Currency Strategist with DailyFX.com

To contact Michael email mboutros@dailyfx.com or follow him on Twitter @MBForex.

To be added to Michael’s email distribution list, send an email with subject line “Distribution List” to mboutros@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES