AUD/USD is steady in Tuesday trade. In the Asian session, the pair is trading at 0.6751, up 0.07% on the day.
Business Confidence Dips
Business confidence fell to 0 in September, dropping to a 5-month low. The indicator dipped lower from +1 point. The marginal drop didn’t weigh on the Aussie, but nonetheless the weak reading points to ongoing weakness in the business sector. The recent rate cuts by the RBA have yet to translate into stronger consumer spending, and the business sector is not showing confidence in the economy.
AUD/USD Technical Analysis
AUD/USD remains below the line of 0.6760, which is an immediate resistance line. The pair has shown little appetite to push higher and I do not expect this trend to change on Tuesday. Above, we have resistance at the round number of 68.00. On the downside, 0.6710 is providing support. Below, 0.6665 is a major support level.
An extended vacation appeared to have done the Chinese yuan some good, as the currency posted gains in the Tuesday session. USD/CNY had been pegged at 7.1476 since early last week, but the pair has declined 0.33% in the Asian session. The yuan gained ground after the Caixin Composite Output Index picked improved to 51.9 in September, up from 51.6 in August. This marked its highest level since April.
USD/CNY Technical Analysis
The pair has headed lower on Tuesday, putting pressure on support at 7.1100. This retracement has erased the gains which the pair made in late September. On the downside, there is support at 7.0590, which has held since mid-August. On the upside, we find resistance at 7.1700.
NZD/USD has posted gains on Tuesday, recovering the losses seen on Monday. In the Asian session, the pair is trading at 0.6317, up 0.41% on the day. The U.S. releases the Producer Price Index later in the day, but unless the reading diverges sharply from the estimate, I expect the pair to remain steady on Tuesday. Next up is the Fed minutes from the September meeting, which will be released on Wednesday.
NZD/USD Technical Analysis
NZD/USD is showing some movement this week, but remains range-bound. There is a Fibonacci level at 0.6357, which has held in resistance since mid-September. Above, we find resistance at 0.6430. On the downside, 0.6280 is providing support.
This article was originally posted on FX Empire
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