NZDUSD: upward trend in the pair
The trading instrument NZDUSD is showing a moderate uptrend, being at 0.6375. Investors abstain from making new contracts, wishing to evaluate the macroeconomic statistics of the USA first.
Certain positive factor for the instrument was the Chinese statistics. For instance, the consumer prices in December displayed zero trend, having decreased by 0.2% in the previous month, while the annual rate had grown to 1.8% from 1.6%. Manufacturing sector prices fell to -0.7% from -1.3%, contrary to experts' expectations of -0.1%. Economists note that the Chinese economy is gradually recovering, guided by the dynamics of inflation, but the effects of the pandemic are still having a negative impact.
- Resistance levels: 0.6400, 0.6450, 0.6500, 0.6535.
- Support levels: 0.6350, 0.6288, 0.6250, 0.6200.
USDJPY: dollar remains under pressure
The American currency keeps sliding down against the yen, making a new low earlier this week at 131.50. Investors give preference to closing some positions on the US dollar while waiting for the consumer price statistics for December and hope to get some hints that the inflation rate will slow down at the end of the year, which will allow the US Federal Reserve to soften the hawkish rhetoric on monetary policy tightening.
An additional support for the yen was a block of macroeconomic data published on January 12. According to the data, the balance of payments, not taking into account seasonal fluctuations, showed an upward correction to 1803.6 billion yen in November, while the deficit was fixed at 64.1 billion yen last month. Estimates of further developments from Eco Watchers for December strengthened to 47.0 points from 45.1 points, the level of the current situation index declined to 47.9 points from 48.1 points. Tokyo consumer prices strengthened to 4.0% for December from 3.8%, showing the fastest increase in 40 years, suggesting that the consumer price index will surpass the 2.0% target for December. Meanwhile, such a situation could reinforce investor sentiment that Japan's regulator will move to phase out stimulus, changing its strategy in controlling earnings.
- Resistance levels: 132.00, 133.00, 133.61, 134.50.
- Support levels: 131.00, 130.00, 129.00, 128.00.
GBPUSD: investors waiting for US inflation data for December
The local decline in the US dollar allows the pair GBPUSD to correct at 1.2140.
Market participants are eager to assess the consequences of the previous day actions in which public sector workers took part and demanded to change their pay, which fell by 3.0% last year because of the rising cost of welfare. Thus, journalists of TV channel Sky News estimated the number of striking health workers at 25.0 thousand, but if the protests continue, the number could reach 100.0 thousand people working in medical institutions, amid which the national health system could be paralyzed. According to The Telegraph, the 2022 protests have deprived the United Kingdom of a record 1.2 million working days, up to 50% of which were recorded in November.
- Resistance levels: 1.2250, 1.2650.
- Support levels: 1.2000, 1.1700.
Silver prices
Having completed the downtrend of the previous three sessions which resulted in the precious metal updating the local minimum of January 6, the instrument quotations shifted to growth today in the morning trading, being at the level of 23.60.
Market participants are still waiting for the December consumer price index data announced for Thursday, which is expected to slow down to 6.5% from 7.1% year-on-year, while the monthly trend may be rolled back to zero, previously showing an increase of 0.1%. Excluding the food and energy group, the decline could reach 5.7% from 6.0%, but the monthly level has the prospect of rising to 0.3% from 0.2%. Traders concede that signs of a steady downward trend in inflation may influence the Fed to make further interest rate corrections, as over 75% of experts agree that the key indicator will only rise 0.25% in February, with the last hike of 0.50% in December. Insignificant, but negative incentives for silver were the likely key rate hikes by a number of key regulators - the Bank of England, the ECB (European Central Bank) and the Central Bank of Japan, but they did not yet announce any further plans.
- Resistance levels: 23.60, 24.00, 24.42 and 24.67.
- Support levels: 23.32, 23.00, 22.70, 22.40.