FXStreet (Guatemala) – Although construction in Jan was down 55.0 vs prior 57.8 and 57.6 expected, analysts at UOB Group explained that the UK manufacturing sector started the year on a firmer footing.

Key Quotes:

“The Markit/CIPS PMI measure of business activity edged up most in three months to 52.9 in January from the previous month’s 52.1, and above expectations of 51.6. Looking at details, the major drivers were the consumer and investment goods sectors, whilst intermediate goods producers also saw solid expansion for the month.”

“While we still maintain a neutral outlook for this pair, the corrective rebound is gaining momentum rapidly and the current up-move has scope to extend higher to test the major 1.4565 resistance.”

“Strong support is at 1.4240 and last Friday’s low of 1.4150 should not be threatened, at least not in the next few days.”

Although construction in Jan was down 55.0 vs prior 57.8 and 57.6 expected, analysts at UOB Group explained that the UK manufacturing sector started the year on a firmer footing.

(Market News Provided by FXstreet)

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Gold price fell but remained near 3-month high. Gold price rose on Monday, supported by the weak Chinese manufacturing PMI data. The Chinese manufacturing PMI fell to 49.4 in January from 49.7 in December, according to the Chinese government on Monday….

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Gold price fell but remained near 3-month high. Gold price rose on Monday, supported by the weak Chinese manufacturing PMI data. The Chinese manufacturing PMI fell to 49.4 in January from 49.7 in December, according to the Chinese government on Monday….

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Major U.S. stock-indexes lower on Tuesday as falling oil prices weighed on energy shares. Oil prices were down 5% as hopes for a deal between OPEC and Russia on output cuts faded with Goldman Sachs saying it was “highly unlikely”. Consumer savings f…

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Major U.S. stock-indexes lower on Tuesday as falling oil prices weighed on energy shares. Oil prices were down 5% as hopes for a deal between OPEC and Russia on output cuts faded with Goldman Sachs saying it was “highly unlikely”. Consumer savings f…

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FXStreet (Guatemala) – AUD/USD lost its edge over night after the RBA statement informed markets and confirmed that the Central Bank was leaving the door wide open for further potential easing, despite the board judging that there “were reasonable prospects for continued growth.”

AUD: RBA signals dovish shift – Goldman Sachs

The RBA left rates on hold at 2.00% but developments abroad are keeping the board from overly optimistic and they remain vigilant. The statement from the RBA indicated that the low level of inflation “may provide scope for easier policy, should that be appropriate to lend support to demand”. We will now wait to see whether the Australian economy is able to weather the turmoil abroad, keeping an eye on iron ore, oil and commodity price sin general, the jobs sector, the value of the Aussie and of course inflation.

The Aussie is a two pronged variable. On one hand, should conditions were to worsen abroad, this would weigh on the Aussie, but at the same time negatively impact the Australian economy and possibly force the hand of the RBA, while at the same time, the RBA needs to balance the performance of the Aussie vs the prices of commodities.

AUD/USD levels

AUD/USD upside target

Technically, the 55-day ma at 0.7139 is fading over the horizon that has well and truly capping the recent rally. Should there be an upside surprise and a turn of events, beyond there lies the 0.7221 mark, being the 78.6% retracement.

AUD/USD downside

To the downside, the 20 dma is at 0.6989 and is the key target now that we have seen a break of the 0.71 handle and 0.7058, 28th Jan low. On a full reversal of the recent rally, 0.6774 is the 2004 low below 0.6920 that guards the 0.6828/29 recent lows.

AUD/USD lost its edge over night after the RBA statement informed markets and confirmed that the Central Bank was leaving the door wide open for further potential easing, despite the board judging that there “were reasonable prospects for continued growth.”

(Market News Provided by FXstreet)

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FXStreet (Córdoba) – EUR/JPY dropped a hundred pips from daily highs amid a stronger yen and a decline of the euro in the market. The Japanese currency gained momentum as stocks in Wall Street extended losses.

The Dow Jones was down 1.50% and the Nasdaq was losing 1.15%. In Europe main stock indexes were about to end with sharp losses with declines between 2% and 3%. Crude oil was falling more than 4% and bottomed so far at $29.85 the barrel (WTI).

EUR/JPY so far defends 131.00

The pair bottomed recently at 130.98 but it bounced to the upside. So far price has been able to hold above the 131.00 zone. If it drops below 131.00 the next support level could be seen at 130.80, the lowest level it reached after the pair jumped following the decision of the Bank of Japan to introduce negative interest rates.

On the opposite direction, immediate resistance might be seen 131.25 (Asian session low), 131.60 (20-hour moving average) and 131.99 (daily high).

EUR/JPY dropped a hundred pips from daily highs amid a stronger yen and a decline of the euro in the market. The Japanese currency gained momentum as stocks in Wall Street extended losses.


(Market News Provided by FXstreet)

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FXStreet (Córdoba) – EUR/USD came under sudden pressure over the last minutes and practically retraced all of its intraday gains as the dollar strengthened against its European peers.

EUR/USD had reached a peak of 1.0939 as the euro benefited from the risk off tone, but failed to consolidate at highs and lost altitude. EUR/USD dropped below the 1.0900 level and hit a low of 1.0892, before the 100-hour SMA offered support. At time of writing, the pair is trading at 1.0898, just a few pips above its opening price.

EUR/USD levels to watch

As for technical levels, immediate supports could be found at 1.0890 (100-hour SMA), 1.0809 (Jan 29 low) and the 1.0777/70 zone (Jan 21 & 7 lows). On the upside, resistances are seen at 1.0939 (Feb 2 high), 1.0970 (100-day SMA), 1.1000 (psychological level) and 1.1052 (200-day SMA).

EUR/USD came under sudden pressure over the last minutes and practically retraced all of its intraday gains as the dollar strengthened against its European peers.

(Market News Provided by FXstreet)

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