09 November 2017 Daily Analysis
Kiwi soared after RBNZ meeting minutes.
Kiwi was traded higher versus the dollar at 0.6948, adding up 0.24% during the Asian trading hours following Reserve Bank of New Zealand (RBNZ)’s decision to keep their benchmark official cash rate steadied at 1.75% as expected. They warned that the inflation outlook was uncertain following pursue of new policies by the new government in the country. According to a statement by RBNZ Governor Grant Spencer, he mentioned that RBNZ has incorporated preliminary estimates of the impact of new government policies in four major areas which include new government spending, a homebuilding program, curbs on immigration and increases in the minimum wage. Despite of the uncertainty of the impact of these policies, an assumption is made that these policies combined would cast more fiscal stimulus in future. On the other hand, the dollar traded roughly unchanged overnight, fell 0.06% at 94.75 as of writing as investors mulled over media reports suggesting that the Senate GOP are considering a one-year delay in the implementation of corporate tax cuts. Besides that, the dollar was lacking its bullish momentum as investors shifted their attention towards President Donald Trump’s arrival in China where he is expected to have lengthy discussions on North Korea with President China Xi Jin Ping.
In the commodities market, crude oil price settled lower by 0.18% at $56.91 per barrel after EIA report that showed crude supplies rose by roughly 2.2 million barrels while production figures rose 0.7% to an all-time high of 9.62 million barrels per day, offsetting a larger-than-expected draw in refineries. Otherwise, gold price rose 0.02% to $1281.40 a troy ounce amid ongoing concerns over tax reform that weighed on the dollar.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 04:00 | NZD – RBNZ Interest Rate Decision | 1.75% | 1.75% | 1.75% |
| 09:30 | CNY – CPI (YoY) (Oct) | 1.6% | 1.8% | 1.9% |
| 09:30 | CNY – PPI (YoY) (Oct) | 6.9% | 6.6% | 6.9% |
| 15:00 | EUR – German Trade Balance (Sep) | 21.6B | 21.1B | – |
| 21:30 | USD – Initial Jobless Claims | 229K | 231K | – |
| 21:30 | CAD – New Housing Price Index (MoM) (Sep) | 0.1% | 0.2% | – |
GBPUSD
GBPUSD, H4: GBPUSD is currently testing back the previous high after breaking below it. Successful closure of candlestick above the current resistance level at 1.3120 would further suggest the pair to trade higher toward the next resistance level at 1.3170 and vice versa.
Resistance level: 1.3120, 1.3170
Support level: 1.3050, 1.2980
EURUSD
EURUSD, H1: EURUSD was traded within consolidation. Absence of obvious signal from candlestick pattern and MACD histogram suggest to wait for breakout to occur to grasp the next movement of the pair.
Resistance level: 1.1610, 1.1670
Support level: 1.1570, 1.1480
USDJPY
USDJPY, H1: USDJPY was traded higher prior breaking above the trend line and resistance level at 113.70. Successful closure of candlestick above the 200-MA line and golden-cross as formed by MACD histogram suggest the pair to extend higher toward the next resistance level at 114.20.
Resistance level: 114.20, 114.70
Support level: 113.70, 112.90
CrudeOIL
CrudeOIL, H1: Crude oil price was traded within consolidation. Absence of obvious signal from candlestick pattern and MACD histogram suggest to wait for breakout to grasp further momentum of the commodity price in nearer term.
Resistance level: 57.95, 61.40
Support level: 56.35, 54.75
GOLD
GOLD_, H1: Gold price was traded lower prior breaking support level at 1282.60. Formation of negative divergence by MACD signal line suggests gold price to extend its losses toward the support by 200-MA line and support level at 1274.00 if breakout below the support at 1280.00 is successful.
Resistance level: 1282.60, 1289.70
Support level: 1280.00, 1274.00