As it turns out, the PBOC set the yuan at a stronger level with USD/CNY at 7.0827, its lowest since the end of May, which has been bullish for AUD and NZD.
Upcoming Potential Catalysts on the Economic Calendar:
U.S. pending home sales flat in November vs. estimated 0.8% m/m uptick, following earlier upgraded 1.2% decline to hold at lowest level on record
Still, profit-taking before the year finally comes to a close might lead to a quick pop higher, possibly taking price up to the nearby area of interest.
EUR/USD is hovering close to the broken support zone near the pivot point level (1.1090) that might be enough to keep gains in check. If so, the pair could resume its slide to the downside targets at S1 (1.1030) or even S2 (1.1000) at a major psychological mark and intraweek lows.
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! ️
Swiss KOF economic barometer up from positively revised 97.2 reading to 97.8 in December vs. projected drop to 96.9 thanks to stronger production activity
Before moving on, ICYMI, Friday’s watchlist checked out AUD/JPY’s move towards a major support zone. Be sure to check out if it’s still a good play!
PBOC set yuan at stronger level with USD/CNY at 7.0827, its lowest level since May
Major pairs were mostly stuck in ranges, although the dollar did manage to chalk up some decent gains against its safe-haven rivals namely the yen and franc. On the flip side, the commodity currencies such as the Aussie and Kiwi held on to a few winnings thanks to developments in China.
Do note, though, that Spain’s flash CPI for December fell short of estimates while the core version of the report showed more signs of easing, likely dampening hopes of ECB tightening anytime soon.
Is the pair gearing up for a quick retest?
It was another relatively quiet day in the financial markets, as traders are likely closing their books and chillin’ before the New Year festivities over the next few days.
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data: