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Forex News Timeline

Tuesday, January 21, 2020

AUD/USD failed to stay near Monday’s drop to seven-day low while taking rounds to 0.6875 during early Tuesday morning in Asia.

AUD/USD formed a Doji candlestick formation after the previous two days of declines.Risk sentiment remained mildly positive despite noises surrounding the Middle East.The return of the US traders and trade/political headlines will be the key to watch.AUD/USD failed to stay near Monday’s drop to seven-day low while taking rounds to 0.6875 during early Tuesday morning in Asia. The pair seems to have been struggling between the mixed messages from trade/political front as well as the US-cantered optimism. Investors will keep eyes on Thursday’s Aussie jobs report for fresh impulse after the bushfires. Geopolitical tension in Libya and Iraq couldn’t defy the market’s risk tone on Monday. The reason could be the longer-lasting impacts of Friday’s upbeat US data as well the International Monetary Fund’s (IMF) projections that risks have become less skewed towards the downside. Also, news that US President Donald Trump’s lawyers urged the Senate to reject the impeachment charges against the Republican leaders might have played its role to keep the market’s little easy. Furthermore, the global leaders’ push for peace in Iraq and Libya, as well as People’s Bank of China’s (PBOC) no change in Loan Prime Rate (LPR), could have confronted the US dollar bulls. Recently, news crossed wires that three rockets landed near the US military bases in Iraq but no casualties were reported. Elsewhere, the US-China phase-two deal talks are likely to take place a bit later after China’s Global Times reported that Beijing needs time to consider the impact of the trade deal. With this, the market’s risk-tone remains mostly directionless awaiting the US traders’ return after Monday’s off. Although no major data is up for publishing on the economic calendar, markets will keep eyes on the US traders’ reaction to recent trade/political headlines. It’s worth mentioning that this week’s key Aussie even is on Thursday when the Australian Bureau of Statics will release December month employment data. Ahead of that, the Australia and New Zealand Banking Group (ANZ) anticipate the Aussie GDP to remain downbeat while saying, “We think Australia’s trend rate of growth for the coming decade will be somewhere between 2.0% and 2.5% per year. This is lower than the estimates from the RBA and Treasury.” Technical Analysis While a lower low formation favors the pair’s grind towards a 16-week-old rising support line, at 0.6825, multiple bottoms surrounding 0.6850 can offer an intermediate halt to the pair’s declines. On the upside, buyers will look for entry beyond a 21-day SMA level of 0.6925.  

New Zealand Business NZ PSI fell from previous 53.3 to 51.9 in December

Early on Tuesday morning in Asia, Reuters came out with the news, relying on the Iraqi police sources, which says that three Katyusha rockets fell on

Early on Tuesday morning in Asia, Reuters came out with the news, relying on the Iraqi police sources, which says that three Katyusha rockets fell on Tuesday inside Baghdad’s Green Zone which houses government buildings and foreign missions. Key quotes "The three rockets were launched from Zafaraniyah district outside Baghdad, the sources said, adding that two rockets landed near the U.S. embassy." FX implications While news like this generally weighs on the market’s risk-tone, helping Gold and weighing down on the AUD/USD and USD/JPY, traders show no major reaction to it by the press time. The USD/JPY and AUD/USD take rounds to 110.15 and 0.6875 whereas Gold seesaws near $1,560 by the time of writing.

The US Department of Agriculture Secretary Sonny Perdue said, as per Reuters, that China will soon begin buying U.S. farm goods to meet the $40 billio

The US Department of Agriculture Secretary Sonny Perdue said, as per Reuters, that China will soon begin buying U.S. farm goods to meet the $40 billion in agricultural purchase agreements it made, alleviating growers’ need for more aid. Key quotes If China is going to achieve that, and we believe they are, we think they have to buy earlier than the traditional export season from the United States. His remarks came one day after U.S. President Donald Trump addressed the convention, promising farmers that the deal will be good for them. Perdue said the third tranche of a $16 billion aid package announced in May will be paid to farmers ‘imminently,’ but that they should not expect a 2020 aid package. Chinese Vice Premier Liu He said Chinese firms will buy American products, ‘based on market conditions,’ raising doubts that the country will meet its commitments under the pact. FX implications News like this generally helps improve the market’s risk tone. That said, the USD/JPY, Gold and AUD/USD show a less reaction by the press time as traders await further clues after the US markets were off on Monday.
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