20.12.2019: USD confounds expectations: outlook for USD/JPY, AUD/USD

20.12.2019: USD confounds expectations: outlook for USD/JPY, AUD/USD


Christmas holiday is just around the corner
and market activity is getting lower. The currency pairs are trying to consolidate
in a more favorable range.The USDX dollar index returned to the average values of December,
locating near the level of 97.40. Its quote is consolidating at this level ahead
of the release of crucial economic data from the United States. The revised GDP data for the third quarter
and consumer spending and income figures are on tap today. At the same time, risky assets are gaining
favor with investors again. The yield on the benchmark 10-year US Treasury
Bonds rose to a 4-month high as the demand for safe-haven assets is cooling down. Traders are actively selling off safe-haven
currencies. Now let’s get back to our technical analysis. Yesterday, we expected the dollar/yen pair
to decline. We also revised our forecast, predicting a
rise of the pair to the level of 110.00 if it overcame the resistance level at 109.60. However, as we can see, the chart continues
to consolidate sideways between the levels of 109.20 and 109.60. Japan’s inflation data met the expectations
of economists. So, no drastic changes are likely to occur
in the dollar/yen pair’s movements. Maybe the pair will end this year trading
at the current levels. The Australian dollar’s dynamics looks quite
curious. The Aussie managed to escape from the previous
range and now it is advancing to 0.6900. Nevertheless, we expect a pullback to the
previous levels of 0.6860, 0.6840, and 0.6820. That’s all for now! We wish you profitable deals! See you on our channel in a couple of hours!

Leave a Reply

Your email address will not be published. Required fields are marked *