Australian Stocks Fall After Trump Signs Hong Kong Support Bills 29/11/19

Australian Stocks Fall After Trump Signs Hong Kong Support Bills 29/11/19

Australian stocks pared back record gains made this week in reaction to Donald Trump’s decision to sign bills in support of Hong Kong. These declines were led by major banks such as Westpac and ANZ, and big miners like BHP and Rio Tinto. China vowed to retaliate against Donald Trump’s decision as it summoned the US ambassador. The country accused the US of interfering in internal matters and of supporting demonstrators who have become unruly in the past few weeks. Australian stocks dropped partly because China is the largest client for many of the companies.

AUS200 Technical Analysis

The AUS200 index pared back part of this week’s gains and is now trading at $6867.08. This price is below the weekly high of $6900. The price is along the lower line of the Bollinger Bands. The RSI has moved from an overbought level of 73 to about 40. The signal line of the MACD has been on a downward trend while the dots of the Parabolic SAR are above the current price. The index may continue to decline.

Canadian Dollar Unchanged Ahead of GDP Data

The Canadian dollar was relatively unchanged during the Asian session as the market waited for important economic data. Statistics Canada will release the GDP, IPPI, and RMPI data later today. The data is expected to show that the country’s economy grew by an annualized rate of 1.2% in the quarter. This will be lower than second quarter’s growth of 3.7%. The Raw Materials Price Index (RMPI) has been a bit volatile in the past few months. In October, data showed no growth of RMPI after declining by -1.8% in the previous month. The Industrial Product Price Index (IPPI) has also been mixed recently. These numbers are important because they are good indicators of inflation.

USD/CAD Technical Analysis

The USD/CAD pair moved slightly upwards to a high of 1.3286. This price is above this week’s low of 1.3253 and below this month’s high of 1.3327. The price is along the middle line of the Bollinger Bands while volumes have been declining. The signal line of the MACD indicator has remained along the neutral line. The pair may see a significant low-volume breakout later today.

Euro Falls Against Sterling

The Euro declined against the sterling ahead of key data from Europe. As the biggest economy in Europe, data from Germany is often very important for the euro. The country will release significant import price data and retail sales numbers. It will also release the unemployment numbers for the month of November. Meanwhile, Eurostat will release the preliminary CPI data for November. The data will likely show minimal inflation even after the ECB lowered interest rates and restarted QE. Other important data from Europe will be mortgage approvals from the UK, Sweden’s GDP, and French GDP data.

EUR/GBP Technical Analysis

The EUR/GBP pair declined to a low of 0.8500. This was lower than this week’s high of 0.9325 and was as a result of the latest UK polling data. The pair is trading below the 14-day and 28-day moving averages while the RSI has remained slightly above the oversold level of 30. The signal line of the MACD has started moving upwards. While the pair may continue moving lower, there is a likelihood that it may also have a pullback in the next few days.

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