There were no major moves during the Asian trading session, however we have some events today, which may affect the sentiment in the market.
News to trade on October 31
- The Bank of Japan announced no changes to its monetary policy in its statement. The interest rate remained at -0.10%, as it was widely expected. The economy of the country will continue to expand moderately. In addition, Japan made downward revisions to GDP (1.4% vs. 1.5% projected in July), CPI (1.4% vs. 1.5% projected in July) for 2019. Following the statement, USD/JPY rose above the resistance at 112.719. More positive comments on the outcome of the US-China trade war can support the USD and the pair can stick above the resistance at 113.569. If the JPY is stronger, the pair will fall below 112.719.
- Chinese manufacturing PMI fell to 50.2 in October. Also, the headline CPI for Australia declined to 1.8% reaching lower than the expected level. It made AUD/USD to test the support at 0.7077. The strong US dollar can make the pair to fall below 0.7077 to the next support at 0.7029. Otherwise, the pair will rise to the resistance at 0.7134.
- The US dollar index was supported by the higher-than-expected level of consumer confidence. The indicator increased to 137.9 vs 135.3 expected. It made the price to test the resistance at its August highs at 96.76. Up to now, the currency is trading in the red zone. Positive news for the USD can make the price stick above 96.76. In case of negative news, the US dollar index will wall downwards to the support at 96.00.
- As for Canada, there are two important events for today: the release of monthly GDP and the speech of the Bank of Canada Governor. GDP is anticipated to stay at the same level, however, the BOC governor Mr. Poloz can make hawkish comments which will support the currency. Recently, the BOC increased the interest rate to 1.75%, so the Governor can throw some hints on the current monetary policy of the bank. Today USD/CAD is rising towards the resistance at 1.3185. If the CAD is supported by today's news, the pair will be able to fall below the support at 1.3076.
Follow us for more news!
The risk sentiment remains under pressure after the comments by China about the countermeasures against the US tariffs. Thus, the AUD/USD and the USD/JPY pairs will be under our attention.
During the European trading session, both the US and the UK yield curves inverted.
On Tuesday, crypto assets dived, with Bitcoin decreasing below the psychologically crucial $5,000 mark for the first time this year…
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
Welcome to Tuesday, people! Here’s your markets update ahead of the European trading session.