|Day's range||0.652 - 0.655|
|52-week range||0.6207 - 0.6941|
It could be another choppy day ahead for the majors. While economic data out of the U.S will influence, the majors will be in the hands of the news wires.
What happens in China with regards to the coronavirus will determine the direction of the Aussie and Kiwi.
The British pound is steady at the start of the week. The Australian and New Zealand dollars are trading at multi-week lows, as the China coronavirus has raised investor risk apprehension.
Traders are going to continue to debate whether the RBA and RBNZ should cut rates in February, but last week’s economic data has cooled thoughts of automatic cuts.
Crossing to the weak side of the main Fibonacci level at .6567 will indicate the selling is getting stronger.
Today’s price action suggests Aussie and Kiwi investors may be afraid to take a chance holding on to long positions over the week-end due to the fear and uncertainty over the Chinese virus.
The pound has enjoyed a good week, with gains of close to one percent. There are two more hurdles for the currency before the weekend, with the release of manufacturing and services PMIs (release time – 9:30 GMT).
It’s a busy day ahead, with private sector PMIs for January to set the tone. Expect retail sales figures from Canada to also drive the Loonie.
The employment report is good news for Australian Dollar bulls and discouraging news for short-sellers betting on a February rate cut. Now they have to reset the clock to April or May so selling the AUD/USD on rallies may not be sound advice unless the coronavirus scare spooks investors into dumping the currency because of Australia’s ties to China’s economy.
The British pound has flexed some muscle, as GBP/USD has climbed above the 1.31 line for the first time in two weeks. Will the upward move continue?
Employment figures give the Aussie a boost as the focus shifts to the ECB. Will Lagarde follow the BoC with a dovish outlook to sink the EUR?
The bearish consumer confidence news is likely to keep a lid on the AUD/USD on Wednesday. If there is an intraday rally, it is likely to be driven by short-covering ahead of Thursday’s Employment Change and Unemployment Rate reports.
Based on the early price action and the current price at .6597, the direction of the NZD/USD the rest of the session on Tuesday is likely to be determined by trader reaction to .6625.
The pound is subdued on Tuesday, but that could change later in the day, as investors brace for soft employment numbers out of the U.K. (releases at 9:30 GMT).
More stats due out of the UK could test the Pound further this afternoon. Earlier in the day, the BoJ held rates steady.
British numbers were dismal last week. On Friday, retail sales declined by 0.6%. The pound is showing signs of weakness, as it has slipped below the symbolic 1.30 level. Is cable headed for further losses?
This week’s price action will be largely controlled in Australia by the Employment Change and Unemployment Rate reports. The results of these reports could determine whether the Reserve Bank of Australia trims their benchmark interest rate in February.
The PBoC left LPRs steady this morning, with some time likely needed to asses the impact of recent cuts and the phase 1 agreement.
Based on Friday’s close at .6611, the direction of the NZD/USD on Monday is likely to be determined by trader reaction to the minor pivot at .6625.
The Aussie and Kiwi were also underpinned by the inking of the trade deal, but domestic economic concerns limited gains as well as increasing chances of central bank rate cuts. Demand for higher-yielding assets drove the Japanese Yen lower.