After breaking through some resistance the USD rally stalled and we saw the USD/CNH move lower with some help from the Bank of China. If one believes that China’s economy has hit the skids and bubbles are about to burst, a lot of easing could be on the horizon out of China that could propel the pair back higher. Currently it is pressing against what was developing as trendline support and perhaps a break back into the channel could prove bullish in the short-term.
UK Nationwide Consumer Confidence
The November Nationwide Consumer Confidence expected at a very low 36, beat expectations at 40 despite concerns spreading throughout Europe (prior 38.) The Sterling gained a mild bid on the release as it approaches its support trendline for December. The triangle continues to shrink on the pair as it consolidates a bit ahead of year-end.
USD/HKD bounces off the 61.8% retracement
USD/HKD bounces off the 61.8% retracement level
USD/HKD Appreciation Defended
The USD/HKD pairs appreciation continues to be defended by the 100 day moving average. However a break above on global demand concerns / further USD strength could bring a test of long-term trendline resistance.