AUDUSD: pair has reached the level of 0.6800
The Australian currency is showing moderate strengthening, having updated the local high of September 13, intending to overcome the resistance threshold of 0.6800.
The macroeconomic block of published Australian data failed to affect the markets, meanwhile the traders' attention was spared by the sharp dip in inflation rate for October to 6.9% from 7.3% earlier, contrary to analysts' estimations of further strengthening to the level of 7.4%. Positive support for the instrument was provided by a 2.2% strengthening of the level of completed constructions for Q3, having earlier decreased by 2.0%. Thursday morning publications are not able to support the prospect for the bullish momentum in the pair. Thus, the industrial sector business activity from S&P Global for November moderately declined to 51.3 points from the previous 51.5 points, not justifying even the neutral estimates of the experts.
- Resistance levels: 0.6853, 0.6900, 0.6950 and 0.7000.
- Support levels: 0.6800, 0.6750, 0.6700, 0.6650.
NZDUSD: updating local highs for August
The New Zealand dollar is trading up moderately, having updated the local highs of August 17.
Positions in the NZD/USD trading instrument continue to remain under pressure amid weak New Zealand indicators. Thus, sentiment expectations from the ANZ for November updated to -13.7% from the previous -2.5%, disappointing analysts who expected only -2.1%. The head of the RBNZ (Reserve Bank of New Zealand) pointed out that the recession was deliberately triggered to lower the consumer price index, having earlier officially strengthened the percentage by 0,75% to the target of 4,25%, after which investors got the signal that in 2023 the value has a chance to reach the maximum peak of 5,5%. The regulator's updated expectations call for the economy to contract at 1.0% for the next 12 months beginning in mid-Spring and then remain at that level for the next six months before resuming growth.
- Resistance levels: 0.6350, 0.6400, 0.6450 and 0.6500.
- Support levels: 0.6288, 0.6250, 0.6200, 0.6155.
Gold prices
The precious metal position in the market updated at 1780.00, intending to continue climbing to the level of 1785.00.
Earlier, investors appreciated the speech of the US Federal Reserve chief, who signaled to the markets his intention to slow down the rate of interest rate correction from the next scheduled meeting. Thus, by mid-December, the agency will strengthen the key rate by 0.25%-0.50%, ending the systemic 0.75% hike. The official commented that the current decisions do not signal the end of the "hawkish" era of monetary policy, and the interest rate will remain high for a long time, where it will remain until the consumer price level corrects to the 2.0% target. Investors began to actively sell off the U.S. dollar, giving gold prices a boost on the market.
Precious metals continue to see uncertainty in the market. According to the CFTC (Commodity Futures Trading Commission), last week net speculative positions for commodities were 116.1 thousand instead of 126.3 thousand. Market bears remain the leaders among swap dealers with 191.153 thousand instead of bullish 95.880 thousand, but sellers cut 5.020 thousand contracts, while buyers strengthened 4.259 thousand, which from the outside looks like a correction.
- Resistance levels: 1785.00, 1806.00, 1877.00.
- Support levels: 1725.00, 1680.00.
Crude Oil market analysis
During the Asian trading session, the "black gold" of the Brent grade traded with contradictory dynamics, testing the 86.80 indicator.
Positive dynamics for oil meets resistance with expectations of OPEC+ meeting announced for the end of the week. According to Reuters citing unnamed sources, the cartel does not intend to approve an additional reduction in production capacity of raw materials, following the example of the previous meeting in October, where the strategy was changed in favor of increasing plans for 2.0 million barrels per day in view of the unstable situation in the world markets. Recall that since December 5, investors expect an increased level of volatility in the market due to the beginning of the prohibition of supplies of oil by sea from Russia. Moreover, the European alliance countries want to agree on the upper price limit for the Russian raw materials, but could not come to an agreement, as uncertainty and disagreement among members of the bloc continue. It is likely that the European authorities' decision will cause growth in oil without a correction in the production quota.
- Resistance levels: 87.33, 89.20, 91.00 and 92.47.
- Support levels: 86.00, 83.89, 82.27, 81.00.