London Forex Report: Aussie Hops Higher On CPI

London Forex Report: Aussie Hops Higher On CPI

London Forex Report: Data showed that US housing market remained resilient, boosted by low interest rates and firm job market. Average home prices in 20 US cities rose at a steady pace of 5.13% YOY in August, according to report by S&P CoreLogic Case-Shiller. On the other hand, concerns over the outcome of the presidential election weighed down on consumer confidence in October. The index took a dip from 103.5 last month to 98.6 this month. USD climbed against 60% of G10FX on the back of softer commodity majors and safe haven currencies, while the USD Index faded a sharp spike in US morning to close 0.04% lower at 98.71

FX Majors: EUR German IFO Business Climate climbed to 110.5 points, beating the estimate of 109.6 points • European Central Bank (ECB) President Mario Draghi defended the central bank’s easy-money policies in Germany’s capital on Tuesday, arguing that ultralow interest rates haven’t harmed German households and stressing that the ECB would keep its policies in place until it reaches its inflation target. GBP Bank of England (BoE) Governor Mark Carney argued that the central bank’s key role is to achieve price stability and warned of the limitations of monetary policy. Market participants have priced out chances of a near-term rate cut from the BoE, given the slump in the pound in the past few weeks. The drop has stoked inflationary pressures and driven investors to sell gilts. JPY Japan is on moderate pace of recovery, according to Cabinet office October economic report. The report cited the slowing down of emerging Asian economies and uncertainty of the outcome of Brexit as downside risks on growth.

EURUSD
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Technical: Bears seek the next downside objective sited at 1.0845, below here opens 1.08. Near term resistance is sited at 1.0930/50, medium term resistance is sited at 1.1030 only over 1.1230 eases bearish bias.
Retail Sentiment: Bullish
Trading Take-away: Short

GBPUSD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish

Technical: As 1.2250 rejects near term corrective advances bears now target pivotal 1.20. Medium term resistance is sited at 1.2330. Only a close over 1.25 eases bearish pressure.
Retail Sentiment: Bullish
Trading Take-away: Short

USDJPY
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bullish

Technical: Equidistant swing corrective objective at 104.86 achieved expect profit taking, near term support is at 103.80 only a close below 102.80 eases bullish pressure. As downside supports survive and 105 is atained bulls target 107 symmetry swing objective next
Retail Sentiment: Neutral
Trading Take-away: Neutral

EURJPY
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Technical: 113.30 removed, channel resistance at 113.95 rejects on first test, while this area caps bears target 1.12 only a close over 114.30 eases bearish pressure.
Retail Sentiment: Neutral
Trading Take-away: Neutral

Commodities FX: GOLD rose due to rising physical demand from India but growing expectations of a U.S. interest rate hike kept a lid on prices. OIL prices fell over 1 percent on Tuesday, with US crude breaking below $50/bbl for a second straight day ahead of weekly data that could show a build in domestic inventories. Downward pressures is also coming back of the verbal jockeying among OPEC, creating uncertainty about potential output cuts at its meeting next month, noting that a particular worry was Iraq’s exclusion from the plan. AUD rallied to 0.77 after Q3 headline CPI surprised on the upside, gaining 1.3% y/y vs. 1.1% y/y expected. The RBA’s forecasts suggest that today’s release is within the central bank’s expectations but remains significantly below its inflation target.CAD strengthened against the USD, but pared sharp gains made after the central bank clarified remarks made by Bank of Canada Governor Stephen Poloz and as oil fell. Poloz clarified that it was not clear cut that the central bank should try to speed up closure of the output gap by cutting rates as it would leave the bank very close to using unconventional tools.

AUDUSD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Technical: A close over .7730 reverses bearish bias and focus shifts to .7830. A further rejection above .7700 would open a quick test of .7500
Retail Sentiment: Bearish
Trading Take-away: Long

USDCAD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bullish

Technical: 1.3360 equidistant AB=CD upside objective achieved as 1.3230 supports bulls target a move to 1.35, only below 1.2960 threatens this objective and suggests a test of pivotal 1.2820.

Retail Sentiment: Bearish
Trading Take-away: Long

XAUUSD
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Technical: Anticipate test of 1229 symmetry swing support failure here lets bears target 1200 as the next downside objective, near term resistance is sited 1276 ahead of pivotal 1300.

Retail Sentiment: Bullish
Trading Take-away: Short

USOIL
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bullish

Technical: Equidistant swing objective sited at 52.40 is the primary upside objective as 49.50 supports the advance ,only below 48.00 would suggest false upside break a continuation of a more complex corrective pattern
Retail Sentiment: Bearish
Trading Take-away: Long

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