Global stocks rallied as traders reacted to the US election victory and hopes of a Covid-19 vaccine. In a statement yesterday, Pfizer and BioNTech revealed that their vaccine was 90% effective. It was also unveiled that many countries, including the US and those in Europe had already booked the shots. These shots will start being administered in the next few months after they pass regulatory approval. In addition, stocks rallied after the conclusion of the American election. Analysts believe that the ongoing challenges to the victory by Donald Trump will not be successful. The Dow Jones and the S&P 500 rose by 2.85% and 1.17%, respectively.
The New Zealand dollar rallied in overnight trading as traders reacted to the latest electronic card retail sales. Data from the country showed that sales rose by 8.8% in October after rising by 5.4% in the previous month. On an annualised basis, they rose by 8.2%. These numbers came as the Reserve Bank of New Zealand started its monthly meeting ahead of the rate decision tomorrow. Analysts believe that the bank will leave interest rates unchanged and remain dovish about the economy.
The economic calendar will have several important events today. Earlier, the Chinese statistics bureau released the latest inflation data. The numbers showed that the headline consumer price index (CPI) declined by 0.3% in October, pushing the annualised rate to 0.5%. Analysts were expecting a MoM and YoY increase of 0.2% and 0.8%, respectively. The producer price index dropped by an annual rate of 2.1%. Later today, we will receive employment data from the UK, inflation numbers from Norway, business expectations numbers from Germany, and JOLTS job openings from the US.
EUR/USD
The EUR/USD pair rose to a high of 1.1921 during the American session. It then erased these gains and dropped to a low of 1.1795. On the four-hour chart, the price is between the 25-day and 50-day exponential moving averages while the Relative Strength Index (RSI) has moved from the overbought level to the current 54. After the big decline, the price seems to be forming a bearish consolidation pattern, which is likely to see it continue to fall.
XAU/USD
The XAU/USD rose to a high of 1965 and then dropped to September lows of 1850. On the four-hour chart, the pair has moved below the short and medium-term moving averages. The RSI has also declined close to the overbought level of 30. At the same time, the Average True Range (ATR) has risen, in a sign that volatility has returned. Therefore, the outlook for the pair is neutral, with key support and resistance levels being at 1800 and 1900, respectively.
NZD/USD
The NZD/USD pair rose to a high of 0.6835 as trader reacted to the electronic sales numbers from New Zealand. On the four-hour chart, this price is above the 50-day and 25-day exponential moving averages. The signal and main line of the MACD is also above the neutral line. Also, the price is above the important resistance level of 0.6800. Therefore, the pair is likely to continue rallying ahead of the RBNZ decision.
