USD/TRY: Turkish leader puts pressure on the lira
Within the Asian trading session the currency pair USD/TRY shows an ambiguous trend of quotations' movement, testing the level of 18.5750.
The Turkish regulator continues to keep to its strategy of gradual rate correction as it is influenced by the Turkish president who said the financial authorities are neutral to the global practice of monetary policy tightening by the leading central banks and forecasts of experts or analytical companies. The government gives priority to attracting new flows of investment into the economy, increasing production capacity and increasing exports; fighting inflation and supporting the lira are also outlined as a priority. The day before the Central Bank of Turkey reduced the rate to 12% for the current year, while for September consumer price growth reached 83.45% year-on-year, but statistics TurkStat (Turkish Statistical Institute) claims a 1.0% year-on-year increase in August, showing a positive trend for the 26th month in a row since the global pandemic coronavirus infection was announced in mid-spring 2020. However, the pace of appreciation has been significantly slowed, with industrial capacity declining due to the global economic downturn.
- Resistance levels: 18.6343, 18.7500, 18.8500, 19.0000.
- Support levels: 18.5000, 18.3737, 18.3000, 18.1500.
AUD/USD: The Aussie retreated from a record low
The Australian currency traded moderately higher, moving away from the April 2020 support level reached earlier, where the AUD/USD instrument reached 0.6170. The currency pair was influenced by the release of statistics on consumer price growth, which strengthened the scenario that the U.S. Federal Reserve will continue to raise interest rates as part of tightening monetary parameters.
Investors will want to assess inflation data in China and its impact on the region's economy at the end of the week. According to the statistics, consumer prices rose 2.8% year-over-year in September, adding 0.3% for the month, down 0.1% earlier, while analysts forecasted growth of 0.4%. Manufacturers cut the price index to 0.9% from 2.3% in the same period, contrary to market expectations of a 1.0% gain. The Chinese regulator is refraining from the global monetary policy trend algorithm, and the current publications only support the resolve of the Celestial Empire's banking authorities.
- Resistance levels: 0.6362, 0.6450, 0.6522 and 0.6572.
- Support levels: 0.6250, 0.6200, 0.6140 and 0.6100.
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GBP/USD: U.S. inflation supports the pair's correction
Earlier the GBP/USD trading instrument gained 2.14% due to the released U.S. inflation statistics for September.
Meanwhile, lackluster British data had limited the pound's strengthening potential as the national GDP rose to 2.0% for the year including a correction in September that did not meet economists' expectations of a strengthening to 2.4%. Manufacturing and industrial production slipped 1.6% in August, beating estimates for a decline of 0.2% and an earlier -1.1% decline. The British regulator increased purchases of gilts to stimulate the bond market by triggering QE, while the buildup of monetary liquidity, according to the rules of the economy, is hitting the national currency.
- Resistance levels: 1.1370, 1.1475, 1.1695.
- Support levels: 1.0940, 1.0600.
WTI Crude Oil Signals
Asian trading session shows mixed dynamics for WTI quotations, which is now testing the level of 88.00 as part of further strengthening.
On Thursday the data of EIA (Energy Information Administration of the US Department of Energy) on the level of "black gold" strategic reserves and oil products had a negative impact on the asset. As of October 7, the value grew 9.88 million barrels within the week, which allowed the total to reach 439.1 million barrels, contrary to analysts' expectations of correction by 1.75 million barrels, while in the previous period the reserves decreased by 1.336 million barrels. Such positive dynamics of correction became possible at the background of the US strategic reserve of 7.7 million barrels on the world oil market.
- Resistance levels: 90.00, 92.58, 94.00, 95.00.
- Support levels: 87.00, 85.00, 83.00, 81.00.