NZDUSD: updating local lows
The New Zealand currency shows a slight strengthening, revealing the potential of the "bulls" in the pair NZD/USD. The instrument is near the level of 0.6430 with the prospect of strengthening, continuing to update the local maximum of August 15.
Investors attribute the positive trend of the asset to a number of technical factors, while the fundamental data was quite contradictory. "The American" got a short-term impulse for the positive dynamics on the background of the release of statistics on the employment market at the end of last week. Thus, the reporting reflected the increase of new vacancies, opened outside of AIC sector for November by 263 thousand, having earlier strengthened by 284,0 thousand for the previous month, at expectations of the market of increase by only 200,0 thousand.
- Resistance levels: 0.6450, 0.6500, 0.6535, 0.6600.
- Support levels: 0.6400, 0.6350, 0.6288, 0.6250.
USDCHF: The US labor market put pressure on dollar
In the Asian trading session the currency pair USD/CHF showed moderate decline, approaching the level of 0.9350.
The "bears" resumed its advantage over the American currency, having unsuccessfully attempted to strengthen on Friday amid investors' reaction to the release of the national labor market data in November, according to which the level of new vacancies rose by 263.0 thousand, By the end of October experts adjusted the value of the same indicator to 264.0 thousand from the previous 261.0 thousand, and unemployment remained at 3.7% for November, while the value of average hourly earnings rose to 0.6% monthly from 0.5% while analysts expected correction to 0.3% and annual to 5.1% from 4.9%, with expectations of 4.6%.
- Resistance levels: 0.9400, 0.9478, 0.9550 and 0.9600.
- Support levels: 0.9350, 0.9300, 0.9200, 0.9100.
EURUSD: Russian oil is under EU sanctions
The EUR/USD trading instrument is testing the 1.0562 mark.
The currency pair is rapidly gaining in value amid the adoption by the European authorities of the price cap on the "black gold" from the Russian Federation. Thus, the sea routes of supplies will be capped at $60/bbl, including insurance costs, freight, etc., which will reduce the actual purchase price by several more dollars. According to Alexander Novak, the Minister of Energy of the RF, such manipulations are contrary to the market pricing mechanism and official Moscow reserves the right to cut the supplies of raw materials to the Eurozone countries which have approved this ban even in spite of the need to reduce hydrocarbon production. Economists assume that the execution of Russia's threats to start supplying energy resources to the alternative market could become a driver for inflation in the EU. Meanwhile, macroeconomic data block displays a negative sentiment. Thus, EU manufacturers in October reported a decline of 2.9% in the price index, having earlier strengthened in September by 1.6%, which lowered the annual rate from 41.9% to 30.8%. Manufacturing capacity in France also continued its strong decline which saw October industrial production decline 2.6%, previously down 0.9% in September.
- Resistance levels: 1.0640 and 1.0850.
- Support levels: 1.0490, 1.0320.
Cryptocurrency Market Analysis
Within the previous week, BTC undertook an upward correction, even managed to recover the losses incurred the day before, which helped it to trade at 17400.00 at present.
The cryptocurrency market is affected by two opposing factors. First, market participants are frightened by the likely consequences that may occur due to the bankruptcy of the FTX platform, which caused them to reduce investment in the digital segment of the market, as evidenced by the decline in the level of "whales", which, according to statistics from Glassnode, updated the two-year low at 1.662 thousand. Second, cryptocurrencies should find support from monetary factors as announced measures a week earlier by U.S. Federal Reserve officials to lower the pace of interest rate hikes at the December summit weakened the U.S. currency against major competitors, which include digital. Some analysts expect the change in the regulator's rhetoric to start the traditional pre-Christmas "Santa Claus rally," in which market leaders can regain their positions.
- Resistance levels: 17830.00, 19100.00, 20000.00.
- Support levels: 16600.00, 15000.00, 13750.00.