Trading plan for 08/01/2019

The financial markets in Asia adopted an attitude of anticipation and inhibition of enthusiasm from the previous session. The currency market volatility is small in favor of USD and CAD. USD bounces off lightly, making up for losses on Monday. EUR / USD reversed down to 1.1435, USD / JPY is drawn to 108.90. CAD / JPY CAD is also strong, attacking 82.00. GBP / USD is relatively stable close to 1.2760.

There is a cautious examination of sentiment on the stock market. Japanese Nikkei225 sustained increases from Europe and the US, and grows 0.8 percent. But in China Shanghai Composite loses 0.3% and brought other emerging markets. Investors prefer to wait for a specific US-China talks.

On Tuesday, the 8th of January, the event calendar is light in important data releases, but the global investors should keep an eye on Industrial Production data from Germany, Halifax House Price Index data from the UK, Consumer Confidence data from the Eurozone and Trade Balance data both from the US and Canada.

AUD/USD analysis for 08/01/2018:

The data on Australia's trade balance in November were released overnight. A country's trade balance reflects the difference between exports and imports of goods and services. The trade balance is one of the biggest components of the Balance of Payment, giving valuable insight into pressures on the country's currency.

Market participants expected a trade balance surplus reduction from AUD 2.316 billion to around AUD 2.175 billion, but the final data was slightly weaker, amounting to 1,925 billion AUD, with the previous reading down to AUD 2.013 billion revised.

Exports on a monthly basis increased by 1% (similar to a month before), and imports by 2% (previously 3%). What is important for the economy of the country is the eleventh month in a row when we managed to achieve a trade surplus. Weaker than the long-term average currency, it affects good results.

Let's now take a look at the AUD/USD technical picture at the H4 time frame. The data did not change the price of the Australian dollar too much, because it is still trading around the level of 0.7148 with a low at the level of 0.7128. The nearest technical support is seen at the level of 0.7070. The momentum is still strong and positive, but the overbought market conditions suggest the continuation of the corrective move down or a horizontal move in the nearest future.


The material has been provided by InstaForex Company -