Daily Forex Analysis - 6 November 2020

USD Overview (06 November 2020)

Yesterday, USD weakened against all major currencies.

During the monetary policy meeting earlier today, the FOMC held interest rate unchanged at the target range of 0-0.25% and no changes on monetary policy were carried out.

The Non-Farm Payroll data will be released later at 2130 (SGT).

- Average Hourly Earnings m/m (Forecast: 0.2%, Previous: 0.1%)

- Non-Farm Employment Change (Forecast: 600K, Previous: 661K)

- Unemployment Rate (Forecast: 7.6%, Previous: 7.9%)

NZD/USD Outlook (06 November 2020)

Overall, NZD/USD is trending upwards. Recently, NZD/USD broke above the key level of 0.67 and trended into the resistance zone of 0.67900.

The New Zealand Inflation Expectation q/q (Actual: 1.59%, Forecast: NA, Previous: 1.43%) released earlier today indicated that inflation level is expected to be higher.

Currently, NZD/USD is testing the resistance zone of 0.67900 and the next support zone is at 0.65400.

Since the result of the U.S. Presidential Election is not yet finalized, look for short-term buying opportunities of NZD/USD if it breaks the resistance zone of 0.67900.

AUD/USD Outlook (06 November 2020)

Overall, AUD/USD is ranging across. Recently, AUD/USD moved higher, breaking the resistance zone of 0.72200.

In the released minutes for the previous monetary policy meeting, the Reserve Bank of Australia highlighted that it is not considering further cut in interest rate, instead, the focus is on purchasing bonds.

AUD/USDs next support zone is at 0.72200 and the next resistance zone is at 0.73900.

Since the result of the U.S. Presidential Election is not yet finalized, look for short-term buying opportunities of AUD/USD.

USD/JPY Outlook (06 November 2020)

Overall, USD/JPY is trending downwards. Recently, USD/JPY broke the support zone of 104.200.

USD/JPYs next support zone is at 102.300 and the next resistance zone is at 104.200.

Since the result of the U.S. Presidential Election is not yet finalized, look for short-term selling opportunities of USD/JPY.

EUR/USD Outlook (06 November 2020)

Overall, EUR/USD is ranging across. Recently, EUR/USD broke the resistance zone of 1.17900.

The eurozone Retail Sales m/m data (Actual: -2.0%, Forecast: -1.4%, Previous: 4.2% revised from 4.4%) released yesterday indicated a decline in consumer spending in September.

EUR/USDs next support zone is at 1.17900 and the next resistance zone is at 1.19800.

Since the result of the U.S. Presidential Election is not yet finalized, look for short-term buying opportunities of EUR/USD.

GBP/USD Outlook (06 November 2020)

Overall, GBP/USD is ranging across. Recently, GBP/USD broke the resistance zone of 1.30400.

During the monetary policy meeting yesterday, the Bank of England (BoE) held interest rate unchanged at 0.10% as widely expected. However, the central bank increased the asset purchase programme by £150 billion. Furthermore, the BoE revised down their forecast for UK economic growth in 2021 from the previous 9% to 7.25%. Unemployment rate was revised from the previous 6% to 6.75%. Inflation projection for next year has improved from 1.75% to 2%, implying that the central banks inflation target of 2-3% may be achieved in 2021. BoE Governor Bailey highlighted during the press conference that the central bank is working on the details of negative interest rates but has also emphasized that doing so does not imply the intention to use them.

The UK Construction PMI data (Actual: 53.1, Forecast: 55.0, Previous: 56.8) released yesterday indicated a slowdown in the growth of the construction sector in October.

GBP/USDs next support zone is at 1.30400 and the next resistance zone is at 1.32200.

Since the result of the U.S. Presidential Election is not yet finalized, look for short-term buying opportunities of GBP/USD.

USD/CAD Outlook (06 November 2020)

Overall, USD/CAD is ranging across. Recently, USD/CAD trended down into the support zone of 1.30300.

The Canadian employment data will be released later at 2130 (SGT).

- Employment Change (Forecast: 59.7K, Previous: 378.2K)

- Unemployment Rate (Forecast: 9.0%, Previous: 9.0%)

Bank of Canada Governor Macklem will be speaking later at 2200 (SGT). During this time, there may be volatility in CAD.

The Canadian Ivey PMI data (Forecast: 55.2, Previous: 54.3) will be released later at 2300 (SGT).

Currently, USD/CAD is bouncing off the support zone of 1.30300 and the next resistance zone is at 1.32200.

Since the result of the U.S. Presidential Election is not yet finalized, look for short-term buying opportunities of USD/CAD if it breaks above the key level of 1.31.

GBP/JPY Outlook (06 November 2020)

Overall, GBP/JPY is ranging across. Recently, GBP/JPY bounced off the support zone of 135.350.

During the monetary policy meeting yesterday, the Bank of England (BoE) held interest rate unchanged at 0.10% as widely expected. However, the central bank increased the asset purchase programme by £150 billion. Furthermore, the BoE revised down their forecast for UK economic growth in 2021 from the previous 9% to 7.25%. Unemployment rate was revised from the previous 6% to 6.75%. Inflation projection for next year has improved from 1.75% to 2%, implying that the central banks inflation target of 2-3% may be achieved in 2021. BoE Governor Bailey highlighted during the press conference that the central bank is working on the details of negative interest rates but has also emphasized that doing so does not imply the intention to use them.

The UK Construction PMI data (Actual: 53.1, Forecast: 55.0, Previous: 56.8) released yesterday indicated a slowdown in the growth of the construction sector in October.

Currently, GBP/JPY is bouncing down from the key level of 136. Its next support zone is at 135.350 and the next resistance zone is at 137.500.

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

EUR/JPY Outlook (06 November 2020)

Overall, EUR/JPY is trending downwards. Recently, EUR/JPY bounced off the resistance zone of 122.600.

The eurozone Retail Sales m/m data (Actual: -2.0%, Forecast: -1.4%, Previous: 4.2% revised from 4.4%) released yesterday indicated a decline in consumer spending in September.

Currently, EUR/JPY is testing the resistance zone of 122.600 and the next support zone is at 119.500.

If EUR/JPY bounces off the resistance zone of 122.600, look for short-term selling opportunities.