Daily Forex Analysis

Yesterday, USD strengthened against most major currencies except the commodity currencies AUD, NZD and CAD.

The ISM manufacturing PMI data (Actual: 59.3, Forecast: 55.6, Previous: 55.4) released yesterday indicated an increased in the rate of expansion in the manufacturing sector during October.

The U.S. Presidential Election will be held today. Volatility in the market is expected.

Overall, NZD/USD is ranging across. Recently, NZD/USD bounced up from the key level of 0.66.

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

- Employment Change q/q (Forecast: -0.7%, Previous: -0.4%)

- Unemployment Rate (Forecast: 5.3%, Previous: 4.0%)

NZD/USDs next support zone is at 0.65400 and the next resistance zone is at 0.67900.

With the upcoming U.S. Presidential Election today that brings volatility, look for short-term selling opportunities of NZD/USD.

Overall, AUD/USD is ranging across.

The Reserve Bank of Australia (RBA) will be announcing their interest rate decision later at 1130 (SGT). It is expected that the central bank will cut interest rate from 0.25% to 0.10%. The likelihood of a rate cut has been increased by the recent outbreak in Melbourne, causing a delay in the announcement on the easing of lockdown restrictions. However, the RBA may emphasize in the rate statement that they will not look for anymore rate cuts after this, thus a hawkish cut. As a result, the AUD/USD may overall strengthen as the expectation of a rate cut has already being priced in last month when it was speculated to take place.

The Australian retail sales m/m data (Forecast: -1.5%, Previous: -1.5%) will be released tomorrow at 0830 (SGT).

Currently, AUD/USD is testing to break the support zone of 0.70400 and the next resistance zone is at 0.72200.

If the RBA cuts interest rate and sounds hawkish in the rate statement, look for short-term buying opportunities of AUD/USD if it bounces off the support zone of 0.70400.

Overall, USD/JPY is trending downwards.

Japanese banks will be closed today in observance of Culture Day. Expect lower trading volume and volatility during the Japanese market session.

The Bank of Japan will be releasing the minutes for the previous monetary policy meeting tomorrow at 0750 (SGT).

USD/JPYs next support zone is at 104.200 and the next resistance zone is at 106.300.

With the upcoming U.S. Presidential Election today that brings volatility, look for short-term buying opportunities of USD/JPY.

Overall, EUR/USD is ranging across.

Yesterday, Italian Prime Minister Giuseppe Conte announced the tightening of COVID-19 restrictions instead of introducing a nationwide lockdown.

Currently, EUR/USD is testing the support zone of 1.16500 and the next resistance zone is at 1.17900.

With the upcoming U.S. Presidential Election today that brings volatility, look for short-term selling opportunities of EUR/USD.

Overall, GBP/USD is ranging across.

GBP/USDs next support zone is at 1.27300 and the next resistance zone is at 1.30400.

With the upcoming U.S. Presidential Election today that brings volatility, look for short-term selling opportunities of GBP/USD.

Overall, USD/CAD is ranging across. Recently, USD/CAD broke below the key level of 1.33.

The Canadian manufacturing PMI data (Actual: 55.5, Forecast: NA, Previous: 56.0) released yesterday indicated continued expansion in the manufacturing sector during October.

Currently, USD/CAD is testing the support zone of 1.32200 and the next resistance zone is at 1.33800.

With the upcoming U.S. Presidential Election today that brings volatility, look for short-term selling opportunities of USD/CAD if it breaks the support zone of 1.32200.

Overall, GBP/JPY is ranging across.

Japanese banks will be closed today in observance of Culture Day. Expect lower trading volume and volatility during the Japanese market session.

The Bank of Japan will be releasing the minutes for the previous monetary policy meeting tomorrow at 0750 (SGT).

Currently, GBP/JPY is testing the resistance zone of 135.350 and the next support zone is at 133.840.

With the upcoming U.S. Presidential Election today that brings volatility, look for short-term selling opportunities of GBP/JPY if it bounces off the resistance zone of 135.350.

Overall, EUR/JPY is trending downwards. Recently, EUR/JPY has been ranging across.

Yesterday, Italy Prime Minister Giuseppe Conte announced the tightening of COVID-19 restrictions instead of introducing a nationwide lockdown.

Japanese banks will be closed today in observance of Culture Day. Expect lower trading volume and volatility during the Japanese market session.

The Bank of Japan will be releasing the minutes for the previous monetary policy meeting tomorrow at 0750 (SGT).

Currently, EUR/JPY is testing to break above the key level of 122. Its next support zone is at 119.500 and the next resistance zone is at 122.600.

With the upcoming U.S. Presidential Election today that brings volatility, look for short-term selling opportunities of EUR/JPY.