The pair broke above resistance at 1.3050 on Thursday. Above, we find resistance at 1.3100. On the downside, the 50-EMA line is situated at the key support level of 1.300. Earlier in the week, the 50-EMA intersected with the candlesticks, and the pair has moved upwards since then. Below, there is support at 1.2950, which faced strong pressure early in the week.
Pacific Currencies – Daily Summary
Yuan Hits 7-Month High
The Chinese yuan has rallied this week gaining close to one percent. Currently, USD/CNY is trading at 6.8545, down 0.33% on the day. This is the pair’s lowest level since July.
Investors seemed pleased with China’s GDP for the fourth quarter, as the growth rate remained unchanged at 6.0%. This matched the estimate. Industrial Production was strong, with a gain of 6.9% in December, up from 6.2% a month earlier.
With no major Australian indicators this week, AUD/USD has been steady, as it hugs the 0.6900 line. The pair is currently trading at 0.6906, up 0.13% on the day.
NZD/USD is slightly higher on Friday. Currently, the pair is trading at 0.6646, up 0.15% on the day. There are no New Zealand events on the schedule, so traders can expect a quiet Friday session for the pair.