Key Asian Levels to Open the Week
Rowan Crosby • 1 min read
Markets were somewhat quiet on Friday to close out the week and so far we are seeing the Asian pairs drifting higher.
Looking first to the economic calendar and it is very thin in Asia this week. Australia has a holiday on Tuesday, and the only top-tier data point of note will be CPI, which is expected to come in at 0.7% for Q4. On the weekend we get Chinese Manufacturing PMI, but otherwise most of the key data and world news will be coming from overseas.
Having a quick assessment of how the AUD/USD is looking from a technical perspective and we can clearly see that price remains in the upward channel. The 0.7700 level remains very strong having held up twice now in recent days while above us the 0.7800 level is not quite as significant. a
0.7780 is the swing high for now and the swing low is really just under the 0.7700 level. My trade plan has been to wait for a break out of this channel, however, we can equally look to trade the range until that break comes.
The NZD/USD is the strongest performer so far in Asian trade and is up 0.33% at present. We can see that price is once again knocking on the door of the 0.7200 level.
This is an interesting point as we can see that there has been a series of lower highs all the way down to this point, so this 0.7200 should present a bit of selling pressure ahead.
If price can break though, that might be the catalyst for a run back towards the highs.