Daily Forex Analysis - 13th September 2021

USD Overview (10 September 2021)

Yesterday, USD weakened against all major currencies.

FOMC committee member Bostic said yesterday that he does not expect quantitative easing tapering to be announced during this months monetary policy meeting due to the recent poor jobs data. Nonetheless, he still expects that the central bank will be able to start tapering this year.

The PPI m/m data will be released later at 2030 (GMT+8).

- PPI m/m (Forecast: 0.6%, Previous: 1.0%)

- Core PPI m/m (Forecast: 0.5%, Previous: 1.0%)

NZD/USD Outlook (10 September 2021)

Overall, NZD/USD is trending upwards.

Currently, NZD/USD is testing the support zone of 0.71000 and the next resistance zone is at 0.72850.

Look for buying opportunities of NZD/USD if it bounces off the support zone of 0.71000.

AUD/USD Outlook (10 September 2021)

Overall, AUD/USD is ranging across. Recently, AUD/USD bounced down from the key level of 0.74.

RBA Deputy Governor Debelle will be speaking later at 1635 (GMT+8). During this time, there may be volatility in AUD.

Currently, AUD/USD is moving up towards the key level of 0.74. Its next support zone is at 0.73300 and the next resistance zone is at 0.75000.

Look for short-term selling opportunities of AUD/USD if it bounces down from the key level of 0.74.

USD/JPY Outlook (10 September 2021)

Overall, USD/JPY is ranging across. Recently, USD/JPY broke below the key level of 110.

USD/JPYs next support zone is at 108.800 and the next resistance zone is at 110.800.

Look for short-term selling opportunities of USD/JPY.

EUR/USD Outlook (10 September 2021)

Overall, EUR/USD is trending upwards.

During the monetary policy meeting yesterday, the European Central Bank (ECB) held its interest rates unchanged. The central bank also kept the size of the Pandemic Emergency Purchase Programme (PEPP) and Asset Purchase Programme (APP) unchanged. However, the ECB decided to slow down the pace of net asset purchases under the PEPP as it deems that favourable financing conditions can still be maintained at such a setting. During the press conference, ECB President Christine Lagarde clarified that the central banks decision to slow down the pace of net asset purchase is not a tapering, but merely a recalibration.

President Lagarde will be speaking at the Eurogroup meeting later at 1730 (GMT+8). During this time, there may be volatility in EUR.

EUR/USDs next support zone is at 1.17600 and the next resistance zone is at 1.19000.

Look for short-term selling opportunities of EUR/USD.

GBP/USD Outlook (10 September 2021)

Overall, GBP/USD is ranging across. Recently, GBP/USD broke the resistance zone of 1.38000.

The UK GDP m/m data (Forecast: 0.5%, Previous: 1.0%) will be released later at 1400 (GMT+8).

GBP/USDs next support zone is at 1.38000 and the next resistance zone is at 1.40000.

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

USD/CAD Outlook (10 September 2021)

Overall, USD/CAD is ranging across. Recently, USD/CAD bounced off the support zone of 1.26100.

During his speech yesterday, Bank of Canada Governor Macklem highlighted that the ongoing economic recovery is “progressing but choppy”. He also said that the central bank is progressing towards the point whereby additional QE stimulus will not be necessary.

The Canadian employment data will be released later at 2030 (GMT+8).

- Employment Change (Forecast: 67.2K, Previous: 94.0K)

- Unemployment Rate (Forecast: 7.3%, Previous: 7.5%)

USD/CADs next support zone is at 1.26100 and the next resistance zone is at 1.29000.

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

GBP/JPY Outlook (10 September 2021)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY bounced down from the key level of 152.

The UK GDP m/m data (Forecast: 0.5%, Previous: 1.0%) will be released later at 1400 (GMT+8).

Currently, GBP/JPY is moving up towards the key level of 152. Its next support zone is at 151.000 and the next resistance zone is at 153.800.

Look for short-term selling opportunities of GBP/JPY if it bounces down from the key level of 152.

EUR/JPY Outlook (10 September 2021)

Overall, EUR/JPY is ranging across. Recently, EUR/JPY broke the support zone of 130.000.

During the monetary policy meeting yesterday, the European Central Bank (ECB) held its interest rates unchanged. The central bank also kept the size of the Pandemic Emergency Purchase Programme (PEPP) and Asset Purchase Programme (APP) unchanged. However, the ECB decided to slow down the pace of net asset purchases under the PEPP as it deems that favourable financing conditions can still be maintained at such a setting. During the press conference, ECB President Christine Lagarde clarified that the central banks decision to slow down the pace of net asset purchase is not a tapering, but merely a recalibration.

President Lagarde will be speaking at the Eurogroup meeting later at 1730 (GMT+8). During this time, there may be volatility in EUR.

Currently, EUR/JPY is moving towards the resistance zone of 130.000 and the next support zone is at 128.500.

Look for short-term selling opportunities of EUR/JPY if it rejects the resistance zone of 130.000.