While some traders are awaiting the interest rate announcement from the European Central Bank, others are evaluating macroeconomic data from China and Australia. The US dollar is trading sluggishly ahead of the announcement of the ECB’s decision on its key rate. It is holding in a narrow trading range between 97.50 and 97.57. Market participants are also keeping close tabs on the news about the coronavirus outbreak in China. Despite China’s authorities reassurances
that everything is under control, the virus is spreading. The government of Wuhan, where the new coronavirus originates from, has imposed a ban on local residents to leave the city. Over 11 million people live in the city. It seems that it will take much more time to eradicate the epidemic. Meanwhile, China’s death toll from pneumonia is increasing. The dollar/yen pair lost momentum amid coronavirus growing fears. The pair is heading down to the level of 109,50. So, the bears are likely to take control over the pair. The quote is expected to drop to the target level at 109.00 and then to 108.50 in the medium term. The yen was supported by the report on Japan’s trade balance. The trade deficit is still widening. The trade surplus is growing but slower than expected. Investors were also discouraged by the fact that exports shrank significantly by 6.3%, missing expectations for a drop of 4.3%. That is why market participants are awaiting comments from the central bank and the government. The AUD/USD pair managed to remain above the resistance level at 0.6830. Today the pair has risen sharply by 30 pips up to the level of 0.6870. If the upward momentum persists, the pair will end this week at the level of 0,69. Speculators welcomed today’s positive report on Australia’s labor market. The unemployment rate unexpectedly declined to 5.1%, its 9-month low, while employment rose by 28,900 people. The figure doubled the forecast value. Nevertheless, investors are not certain that this data will be enough for the RBA to keep the key rate cut on hold. In the medium term, the Aussie may resume its downward trend. Therefore, if the quote moves up, it will be a good moment to enter the market and open short deals. That’s all for now. We wish you profitable deals! See you on our channel with a new video in
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