Aussie Falls as Trade Concerns Rise 12/11/19

Aussie Falls as Trade Concerns Rise 12/11/19

The Australian dollar declined after NAB Bank released its monthly business survey numbers. Data showed that business confidence increased from zero in September to 2. The business survey increased slightly from 2 to 3. The employment sub-index remained steady at 4 in the month. In a statement, the bank’s chief economist said that these numbers showed some modest outcomes. He also said that forward-looking indicators had shown some improvements. Part of the reason why the Aussie declined was that the market has started to worry about trade. They are not sure about the progress of talks between the US and China. They will likely get more information as Trump delivers a speech at the Economic Club of New York.

AUD/USD Technical Analysis

The AUD/USD pair dropped to a low of 0.6830. On the hourly chart, today’s low was along the 23.6% Fibonacci Retracement level. The pair is also below the 14-day and 28-day moving averages. The price is also along the lower line of the Bollinger Bands. The main and signal lines of Stochastic Oscillator have started moving upwards. The pair may see some significant movements in either direction as Trump delivers his speech.

Sterling Rises as Farage Gives Johnson a Boost

Sterling rose after Nigel Farage gave Boris Johnson a boost in the upcoming election. This is after he announced that the Brexit party will not challenge Tory MPs currently seeking re-election. Previously, he announced that his new party would have 600 candidates in the upcoming election. This decision may lead to a big win for the Conservatives. Polls suggest that Tories are winning against the Labour party. Johnson was forced to call for an election after major divisions in Parliament made it almost impossible to pass a unanimous Brexit package. Later today, the market will receive employment data from the UK.

GBP/USD Technical Analysis

The GBP/USD pair rose sharply yesterday as the market reacted to the new political order. The pair moved from a low of 1.2767 to a high of 1.2897. The pair then eased slightly and is trading at 1.2857. On the hourly chart, the price is trading between the 38.2% and 50% Fibonacci Retracement level. The price is along the middle line of the Bollinger Bands. It is also between the Envelopes indicator. The pair may see some more volatility today as the market receives jobs data for the month of October.

Hang Seng Index Falls as Protests Continue

The Hang Seng index continued moving lower as the market reacted to the ongoing protests in Hong Kong. In recent days, protests have escalated as police shot dead two protesters. This has led to more protests in the Asian financial hub. Recent data released by the government showed that the city went into a recession in the third quarter. This is because foreigners are unlikely to go to the city as the ongoing protests escalate. In addition, companies seen supporting Beijing have been attacked.

Hang Seng Technical Analysis

The Hang Seng index declined to a low of $26,770 from a high of $27,953. The price is below the 14-day and 28-day moving averages. The two averages have made a bearish crossover, which is an indication that the index may continue to move lower. The RSI is also along the overbought level of 30. The pair may continue to move lower as violence continues.


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