The EURUSD price hovered at a key support level as traders waited for the key Eurozone GDP and ZEW sentiment data. The German statistics agency, commonly known as Destatis, will first publish the latest industrial production data in the morning session. The data is expected to show that the country’s industrial production rebounded by 0.9% in July after falling by 1.3% the previous month. Later, the ZEW Institute will publish the latest German economic sentiment numbers followed by the final estimate of the second-quarter GDP data. These numbers will come a day before the European Central Bank (ECB) starts its September meeting.
AUDUSD was little changed after Chinese data showed that the country’s economy was slowing down. According to the statistics agency, the country’s exports rose by 25.6% in August after rising by 19.3% in the previous month. In the same period, imports rose by 33.1%. As a result, the country’s trade surplus widened from $56.59 billion in July to more than $58.34 billion in August. This slowdown happened as China suffered from more Covid cases, pushing the country to shut down some ports. Recent data showed that the country’s manufacturing and non-manufacturing PMI declined to the contraction zone in August.
The Australian dollar also wavered after the latest interest rate by the Reserve Bank of Australia (RBA). The bank left interest rates unchanged at 0.1%. It also left its quantitative easing policies unchanged as officials adopted a wait and see approach as the country imposed tough new restrictions. New South Wales and Victoria, which account for 55% of the economy are in lockdown. Still, Philip Lowe, the country’s central bank governor insists that the best approach to deal with the new wave is fiscal stimulus by the government.
AUDUSD
The AUDUSD was little changed after the RBA interest rate decision. The pair is trading at 0.7433, which is significantly higher than last week’s low of 0.7100. On the four-hour chart, the price is between the upper and middle lines of the Bollinger Bands. The price is also slightly above the 25-day moving averages while the MACD has moved slightly above the key neutral level. Therefore, the pair may keep rising as bulls target the key resistance at 0.7600.
EURUSD
The EURUSD declined to 1.1855 in the overnight session. This was a notable price since it was along the lower line of the ascending channel pattern. The price was also substantially lower than last Friday’s high of 1.1905. The pair is a few pips above the 25-day moving average while the RSI has started rising. Therefore, the pair will likely resume the bullish trend as bulls target the upper side of the channel a 1.1900.
NZDUSD
The NZDUSD is hovering near its highest level in about two months as New Zealand began ending its lockdown measures. The pair is trading at 0.7132, which is slightly below this week’s high at 0.7168. On the hourly chart, the price is slightly above the 25-day moving average while the MACD has moved slightly below the key neutral level. The On Balance Volume (OBV) indicator has also been rising. Therefore, the pair may keep rising as bulls target the key resistance a 0.7200.
