USDCHF: Swiss Manufacturing Prices Decline
The USDCHF currency pair is testing 0.9167.
According to the final December report, released by the FSO (Swiss Federal Statistics Office), the value of producer goods declined to 108.5 points or 0.7% for 2022, while the yearly figure increased by 3.2%, having risen 3.8% earlier. Most of the negative stimulus was due to lower prices for petroleum products, construction materials and semi-finished goods. The average annual inflation rate reached 5.6%, having strengthened considerably since the beginning of the year due to higher prices for food, oil, natural gas and metallurgical products.
- Resistance levels: 0.9245 and 0.9410.
- Support levels: 0.9085 and 0.8910.
AUDUSD: bulls have gained an advantage in the pair
The AUDUSD is in a mixed trend and is set to recover the positions lost during the two-day downward correction, having retreated from the local high of August 15. The stock is testing the 0.6915 level, having moved to strengthen due to technical factors and U.S. publications.
Negative stimulus for the AUD/USD currency pair was given by the December reports on employment in Australia, according to which analysts noted a decrease in employment by 14.6 thousand, while earlier the forecast growth of 22.5 thousand, while last month's figure was 58.3 thousand. Meanwhile, the number of unemployed rose to 3.5%, while November statistics was revised to 3.5% from 3.4%. The labor force fell to 66.6% from 66.8% of the total population estimate. The Reserve Bank of Australia's (RBA) regular key rate hikes are having a negative effect on the national employment market as the interest rate has increased by 3.0% since Spring 2022 and the trend of tightening monetary parameters will continue amid a high rate of consumer inflation in the country. Market participants also estimated data released by Melbourne Institute after which preliminary consumer price forecast for January was revised up to 5.6% from 5.2%.
- Resistance levels: 0.6950, 0.7000, 0.7050 and 0.7100.
- Support levels: 0.6900, 0.6850, 0.6800, 0.6750.
EURGBP: the European currency is regaining losses
The single currency of Eurozone reflects a moderate strengthening against the British pound, revealing the potential of the "bulls" impulse received earlier, where EURGBP pair managed to update the local minimum of December 21. Technical factors were able to become drivers for the upward dynamics, but the fundamental incentives remain the same. The weaker American currency gives the space for the EUR/GBP pair to maneuver in order to strengthen, because the weak macroeconomic statistics from the U.S. and the likely decline of the adjustment of interest rates from the U.S. Federal Reserve put pressure on the "American".
The released statistics showed a decline of the manufacturing sector from -0.6% last month to 0.7% this month while analysts expected only -0.1%. Manufacturing capacity was down from 79.4% last month to 78.8%, contrary to expectations of a 79.6% gain. The change in the level of approved building work orders for December was -1.6%, against economists' forecast of -1.1%, building permits issued sagged by 10.6%, with the overall correction in the number of new buildings down 1.4%, previously down 1.8% for November.
- Resistance levels: 0.8750, 0.8777, 0.8817, 0.8864.
- Support levels: 0.8720, 0.8688, 0.8645, 0.8600.
Oil market analysis
During the Asian session, "black gold" WTI is under contradictory factors, testing the 81.00 level near the local high of December 5, updated last Wednesday.
Economists forecast a significant increase in demand for fuels and lubricants in China because the quarantine measures have been lifted by the authorities, which should stimulate the recovery of industrial activity and logistics in the supply chain. China has been gradually increasing its energy purchases, including Russian purchases at a significant discount, which according to IEA (International Energy Agency) analysts would increase global demand by 1.9% YoY to a record 107.0mmbpd, while sanctions pressure on Russia would decrease the supply on the world markets.
- Resistance levels: 81.00, 82.00, 82.62, 83.50.
- Support levels: 79.81, 78.74, 78.00, 77.00.