Daily Forex Analysis - 1 December 2020

USD Overview (01 December 2020)

Yesterday, USD strengthened against most major currencies except GBP.

The Chicago PMI data (Actual: 58.2, Forecast: 59.4, Previous: 61.1) released yesterday indicated a slowdown in the expansion of business activities in Chicago state.

Pharmaceutical company Moderna announced yesterday that new data shows its COVID-19 vaccine is more than 94% effective and plans to request for emergency clearance from the FDA.

President-elect Joe Biden confirmed yesterday that former Fed Chair Janet Yellen will be his official nominee for Treasury secretary.

The U.S. ISM Manufacturing PMI data (Forecast: 57.9, Previous: 59.3) will be released later at 2300 (SGT).

Federal Reserve Chairman Jerome Powell will be testifying on the CARES Act later at 2300 (SGT). During this time, there may be volatility in USD.

NZD/USD Outlook (01 December 2020)

Overall, NZD/USD is trending upwards.

Currently, NZD/USD is testing the support zone of 0.70000 and the next resistance zone is at 0.72000.

Look for buying opportunities of NZD/USD if it bounces off the support zone of 0.70000.

AUD/USD Outlook (01 December 2020)

Overall, AUD/USD is trending upwards. Recently, AUD/USD bounced off the resistance zone of 0.73900.

The Australian Building Approvals m/m data (Actual: 3.8%, Forecast: -3.0%, Previous: 16.2% revised from 15.4%) released earlier today indicated a slowdown in the number of building permits issued.

The Reserve Bank of Australia (RBA) will be announcing their monetary policy decision later at 1130 (SGT). It is expected that the RBA will be holding interest rate unchanged at 0.10%. Since Australia has been making progress in containing the pandemic, take note of the central banks view of the Australian economy performance since the previous monetary policy meeting. Also pay attention to whether the RBA is looking into further monetary policy easing.

RBA Governor Philip Lowe will be testifying before the House of Representatives Standing Committee on Economic tomorrow at 0800 (SGT). During this time, there may be volatility in AUD.

The Australian GDP q/q data (Forecast: 2.4%, Previous: -7.0%) will be released tomorrow at 0830 (SGT).

Currently, AUD/USD is moving towards the resistance zone of 0.73900 and the next support zone is at 0.72200.

If the RBA express optimism in the Australian economy, look for buying opportunities of AUD/USD if it breaks the resistance zone of 0.73900.

USD/JPY Outlook (01 December 2020)

Overall, USD/JPY is ranging across.

The Japanese Unemployment Rate data (Actual: 3.1%, Forecast: 3.1%, Previous: 3.0%) released earlier today indicated a slight increase in unemployment for October.

USD/JPYs next support zone of 103.400 and the next resistance zone is at 105.600.

Look for buying opportunities of USD/JPY.

EUR/USD Outlook (01 December 2020)

Overall, EUR/USD is ranging across. Recently, EUR/USD rejected the resistance zone of 1.19800.

The German Preliminary CPI m/m data (Actual: -0.8%, Forecast: -0.7%, Previous: 0.1%) released yesterday indicated a decline of inflation into the negative level in November.

The eurozone CPI Flash Estimate y/y data will be released later at 1800 (SGT).

- CPI Flash Estimate y/y (Forecast: -0.2%, Previous: -0.3%)

- Core Flash Estimate y/y (Forecast: 0.2%, Previous: 0.2%)

Currently, EUR/USD is moving towards the resistance zone of 1.19800 and the next support zone is at 1.17900.

Look for short-term buying opportunities of EUR/USD if it breaks the resistance zone of 1.19800.

GBP/USD Outlook (01 December 2020)

Overall, GBP/USD is trending upwards. Recently, GBP/USD has been ranging across.

The UK Final Manufacturing PMI data (Forecast: 55.2, Previous: 55.2) will be released later at 1730 (SGT).

GBP/USDs next support zone is at 1.32200 and the next resistance zone is at 1.34600.

Look for short-term buying opportunities of GBP/USD.

USD/CAD Outlook (01 December 2020)

Overall, USD/CAD is trending downwards. Recently, USD/CAD broke the support zone of 1.30300.

The Canadian Building Permits m/m (Actual: -14.6%, Forecast: TBA, Previous: 18.6% revised from 17.0%) released yesterday indicated a strong decline is the number of building approvals in October.

The Canadian GDP m/m data (Forecast: 0.9%, Previous: 1.2%) will be released later at 2130 (SGT).

Also, The Canadian Manufacturing PMI data (Forecast: NA, Previous: 55.5) will be released later at 2230 (SGT).

USD/CADs next support zone is at 1.28400 and the next resistance zone is at 1.30300.

Look for selling opportunities of USD/CAD.

GBP/JPY Outlook (01 December 2020)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY broke above the key level of 139.

The Japanese Unemployment Rate data (Actual: 3.1%, Forecast: 3.1%, Previous: 3.0%) released earlier today indicated a slight increase in unemployment for October.

The UK Final Manufacturing PMI data (Forecast: 55.2, Previous: 55.2) will be released later at 1730 (SGT).

GBP/JPYs next support zone is at 137.500 and the next resistance zone is at 140.000.

Look for short-term buying opportunities of GBP/JPY.

EUR/JPY Outlook (01 December 2020)

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY trended into the resistance zone of 124.750.

The Japanese Unemployment Rate data (Actual: 3.1%, Forecast: 3.1%, Previous: 3.0%) released earlier today indicated a slight increase in unemployment for October.

The German Preliminary CPI m/m data (Actual: -0.8%, Forecast: -0.7%, Previous: 0.1%) released yesterday indicated a decline of inflation into the negative level in November.

The eurozone CPI Flash Estimate y/y data will be released later at 1800 (SGT).

- CPI Flash Estimate y/y (Forecast: -0.2%, Previous: -0.3%)

- Core Flash Estimate y/y (Forecast: 0.2%, Previous: 0.2%)

Currently, EUR/JPY is testing the resistance zone of 124.750 and the next support zone is at 122.600.

Look for short-term buying opportunities of EUR/JPY if it breaks the resistance zone of 124.750