Daily Forex Analysis - 02 February 2021

USD Overview (02 February 2021)

Last Friday, USD strengthened against all major currencies.

The Final Manufacturing PMI data (Actual: 59.2, Forecast: 59.1, Previous: 59.1) released yesterday finalized an increase in the pace of expansion of the manufacturing sector in January.

The ISM Manufacturing PMI data (Actual: 58.7, Forecast: 60.0, Previous: 60.7) released yesterday indicated continued expansion in the manufacturing sector albeit at a slower pace.

NZD/USD Outlook (02 February 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD bounced down from the key level of 0.72.

The New Zealand employment data will be released tomorrow at 0545 (SGT).

- Employment Change q/q (Forecast: 0.1%, Previous: -0.8%)

- Unemployment Rate (Forecast: 5.6%, Previous: 5.3%)

NZD/USDs next support zone is at 0.71000 and the next resistance zone is at 0.72850.

Look for selling opportunities of NZD/USD.

AUD/USD Outlook (02 February 2021)

Overall, AUD/USD is ranging across. Recently, AUD/USD bounced off the support zone of 0.76000.

The Reserve Bank of Australia (RBA) will be announcing their monetary policy decision later at 1130 (SGT). It is expected that the central bank will be holding monetary policy unchanged.

The Building Approvals m/m (Forecast: 2.5%, Previous: 2.6%) will be released tomorrow at 0830 (SGT).

RBA Governor Lowe will be speaking at the National Press Club of Australia Conference tomorrow at 0930 (SGT). During this time, there may be volatility in AUD.

AUD/USDs next support zone is at 0.76000 and the next resistance zone is at 0.77900.

If the RBA expressed signs of dovishness due to the recent lockdown that was imposed in Perth yesterday, look for selling opportunities of AUD/USD.

USD/JPY Outlook (02 February 2021)

Overall, USD/JPY is trending upwards. Recently, USD/JPY broke above the resistance zone of 104.600.

Currently, USD/JPY is moving towards the support zone of 104.600 and the next resistance zone of 105.800.

Look for buying opportunities of USD/JPY if it bounces off the support zone of 104.600.

EUR/USD Outlook (02 February 2021)

Overall, EUR/USD is trending downwards. Recently, EUR/USD trended into the support zone of 1.20750.

The eurozone Preliminary Flash GDP q/q data (Forecast: -1.4%, Previous: 12.5% revised from 12.7%) will be released later at 1800 (SGT).

Currently, EUR/USD is testing the support zone of 1.20750 and the next resistance zone is at 1.23170.

Look for selling opportunities of EUR/USD if it breaks the support zone of 1.20750.

GBP/USD Outlook (02 February 2021)

Overall, GBP/USD is trending upwards.

The UK Final Manufacturing PMI data (Actual: 54.1, Forecast: 52.9, Previous: 52.9) released yesterday indicated an upwards revision to the PMI of the manufacturing sector in January.

Currently, GBP/USD is moving towards the key level of 1.37. Its next support zone is at 1.34800 and the next resistance zone is at 1.37800.

Look for short-term buying opportunities of GBP/USD if it breaks above the key level of 1.37.

USD/CAD Outlook (02 February 2021)

Overall, USD/CAD is ranging across. Recently, USD/CAD bounced off the support zone of 1.27900.

The Canadian Manufacturing PMI data (Actual: 54.4, Forecast: NA, Previous: 57.9) released yesterday indicated continued expansion of the manufacturing sector in January albeit at a slower pace.

Currently, USD/CAD is moving towards the support zone of 1.27900 and the next resistance zone is at 1.29800.

Look for buying opportunities of USD/CAD if it bounces off the support zone of 1.27900.

GBP/JPY Outlook (02 February 2021)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY bounced off the resistance zone of 144.000.

The UK Final Manufacturing PMI data (Actual: 54.1, Forecast: 52.9, Previous: 52.9) released yesterday indicated an upwards revision to the PMI of the manufacturing sector in January.

Currently, GBP/JPY is moving towards the resistance zone of 144.000 and the next support zone is at 142.200.

Look for buying opportunities of GBP/JPY if it breaks the resistance zone of 144.000.

EUR/JPY Outlook (02 February 2021)

Overall, EUR/JPY is ranging across.

The eurozone Preliminary Flash GDP q/q data (Forecast: -1.4%, Previous: 12.5% revised from 12.7%) will be released later at 1800 (SGT).

Currently, EUR/JPY is moving towards the resistance zone of 127.150 and the next support zone is at 125.000.

Look for selling opportunities of EUR/JPY if it rejects the resistance zone of 127.150.