AUDUSD: the asset has renewed its local peak
The Australian currency is rapidly strengthening positions in the development of "bullish" dynamics within the trading session in Asia. At the moment trading instrument AUDUSD is near the level of 0.6830, updating the local maximum of December 15.
Notable support for the pair was the Australian macroeconomic data unit according to which the manufacturing PMI (business activity index) released by S&P Global and Commonwealth Bank of Australia for December strengthened to 56.9 points against 50.4 points earlier, against the neutral forecast of experts of 50.4 points. Consumer sentiment was supported by the December statistics from the PRC, where business activity in the manufacturing sector from Caixin decreased to 49.0 points from 49.4 points while market participants estimated the level at 48.8 points.
- Resistance levels: 0.6850, 0.6900, 0.6950 and 0.7000.
- Support levels: 0.6800, 0.6750, 0.6700, 0.6628.
USDJPY: the pair updated its local low for June 2020
Us Dollar is correcting against the Japanese yen, in the background of which the pair USD/JPY is testing the area of 129.50 as part of the development of the downward dynamics, formed from December 29.
First of all the "bears" strengthened due to the expectations of the market participants regarding the future of the monetary policy of the US FRS officials. As of today the economists suppose the continuation of the downward correction of the key indicator till the end of 2023, being guided by the economic situation. Recall that the correction by the U.S. regulator, which began in March, corrected the index by 425.0 basis points, and only in the December meeting the rate slowed down. Thanks to such manipulation, the U.S. dollar strengthened its position significantly, gaining about 8.0%, which was the best dynamic since 2015.
- Resistance levels: 130.00, 131.00, 132.00, 133.00.
- Support levels: 129.00, 128.00, 127.00, 126.00.
USDCAD: upward movement has a high perspective
The trading instrument USDCAD is holding above the level of 1.3550, intending to consolidate its positions.
The Canadian currency is under bearish influence amid a downward correction in China's PMI (Manufacturing PMI), which only indicates a slowdown in global economic indicators and a likely decline in consumer sentiment in the oil market, potentially putting Canadian exports at risk. According to NBS (National Bureau of Statistics) data for December, the index declined to 47.0 points from 48.0 points and the position of the composite indicator from Caixin to 49.0 points from 49.4 points. However, economists are hopeful that the loosened quarantine restrictions will act as a stimulus to strengthen the macroeconomic statistical bloc throughout 2023.
Experts said the key publication of the current week, which may have an impact on the trading tool is the December statistics release on the U.S. employment market. In case consumer inflation stays at 3.7%, the number of the employed will comply with the forecasts, strengthening by 200.0 thousand, the US Federal Reserve will have an additional argument for the correction of the monetary parameters in the future to overcome the rapid growth of inflation.
- Resistance levels: 1.3600, 1.3793 and 1.3975.
- Support levels: 1.3427, 1.3300, 1.3183.
Oil Market analysis
The price of benchmark Brent crude oil reflects contradictory trades, being in the area of 85.40. Earlier the price showed a slight strengthening, updating the local maximum of December 5, to which the instrument returned at the end of the previous month due to the weakening of the U.S. dollar, which sagged on expectations of lower rates of monetary policy correction by U.S. Federal Reserve officials.
Currently, experts assume a downward correction of the key indicator after Q2 2023 under favorable economic circumstances. Recall that the correction momentum, which began in March, changed the index by 425 basis points, significantly reducing the pace at the December summit. Thanks to such a decision, the "American" has strengthened substantially against its major peers, adding about 8.0%, reflecting its best growth performance since 2015.
- Resistance levels: 86.00, 87.33, 89.20, 91.00.
- Support levels: 85.15, 83.89, 82.27, 81.00.