Currency snapshot (commodity pairs)

Dollar index trading at 96.41 (-0.71%)

Strength meter (today so far) – Aussie +1.39%, Kiwi +1.60%, Loonie +0.53%

Strength meter (since last week) – Aussie +1.33%, Kiwi +1.78%, Loonie +0.08%

AUD/USD –

Trading at 0.718

Trend meter –

• Long term – Range/Sell, Medium term – sell, Short term – Range/sell

Support –

• Long term – 0.67, Medium term – 0.67, Short term – 0.69

Resistance –

• Long term – 0.79 Medium term – 0.75, Short term – 0.72

Economic release today –

• September trade balance came at $3.017 billion with exports rising by 1 percent and imports declining by 1 percent.
• Australia’s terms of trade improved with a 3.7 percent rise of exports and only 1.9 percent rise in import price.

Commentary –

• The Australian dollar is likely to decline further as the emerging market woes and strong dollar continues to dominate. Aussie rose sharply this week, on broad-based weakness in USD.

NZD/USD -

Trading at 0.663

Trend meter -

• Long term – Sell, Medium term – Sell, Short term – Range/Sell

Support –

• Long term – 0.62, Medium term – 0.65, Short term – 0.65 (testing)

Resistance –

• Long term – 0.725, Medium term – 0.7, Short term – 0.675

Economic release today –

• NIL

Commentary –

• The New Zealand dollar remains under pressure as RBNZ vows to keep rate at this level through 2019 and 2020. The best performer of the week. Active Call - Sell kiwi targeting 0.59 area.

 USD/CAD –

Trading at 1.309

Trend meter –

• Long term – sell, Medium term – sell, Short term – Range/Buy

Support –

• Long term – 1.26, Medium term – 1.29, Short term – 1.29

Resistance –

• Long term – 1.35, Medium term – 1.33, Short term – 1.32

Economic release today –

• Markit manufacturing PMI report will be released at 13:30 GMT.

Commentary –

• Broad-based strength in the dollar is pushing loonie lower against the USD, despite a rate hike from the Bank of Canada. Active Call - Sell USD/CAD at 1.314 targeting 1.25 area.