Happy 2018!
First day of the year start off with commodities currencies strengthening. AUDUSD trading above 0.78 starting the new year, confirming the bullish trend since the dip at early December, lowest point at 0.7500. This week, we have China Caixin Manufacturing PMI at Tuesday 2 Jan, 12:45pm SYD time (9:45am MY/SG time), forecasted 50.7. Aussie trade balance data at 5 Jan Friday 1130am, expecting strong 0.55B, with previous number of 0.11B. NZDUSD stably sitting above 0.700 since Oct 2016, after the NZ election that smashed the kiwi. Meanwhile, AUDNZD still trying to test and break above strong resistance 1.100.
Another commodities currency, CAD strengthen has continue since last 2 weeks, with USDCAD approaching 1.245 support level. This week Canada will release Labor data and Trade Balance data at Friday 5 Jan (6 Jan Saturday 12.30am SYD time). Data is expected by the market to be weaker, open the room for USDCAD movement.
USD has been relatively weak for the last 2 weeks. Main event this week is the labour data at Friday 5 Jan (6 Jan Saturday 12.30am SYD time), with NFP data expected to increase 189K, relatively lower number compared to last month’s 228K. And unemployment rate expected to remain 4.1%.
