Daily Forex Analysis - 19th August 2021

USD Overview (19 August 2021)

Yesterday, USD strengthened against most major currencies except GBP and EUR.

In the released monetary policy meeting minutes by the Federal Reserve earlier today, it was stated that most committee members felt that a tapering on quantitative easing this year could be appropriate if the economy were to grow further to their expectation; while several members felt more appropriate for tapering to be carried out only next year.

The housing data released yesterday indicated an increase in the number of building permits issued and a slowdown in the increase of new residential buildings that began construction in July.

- Building Permits (Actual: 1.64M, Forecast: 1.61M, Previous: 1.59M revised from 1.60M)

- Housing Starts (Actual: 1.53M, Forecast: 1.60M, Previous: 1.65M revised from 1.64M)

NZD/USD Outlook (19 August 2021)

Overall, NZD/USD is ranging across. Recently, NZD/USD weakened and broke below the key level of 0.69 after the release of the hawkish Federal Reserve meeting minutes.

The Reserve Bank of New Zealand (RBNZ) held interest rate unchanged at 0.25% as opposed to the expected rate hike due to the newly imposed nationwide level 4 lockdown. Nonetheless, the central remains hawkish, carrying forward its expectation of a rate hike from September 2022 to this coming December as indicated in the quarterly monetary policy statement.

NZD/USDs next support zone is at 0.67900 and the next resistance zone is at 0.69500.

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

AUD/USD Outlook (19 August 2021)

Overall, AUD/USD is trending downwards. Recently, AUD/USD weakened after the release of the hawkish Federal Reserve meeting minutes.

The Australian employment data will be released later at 0930 (GMT+8).

- Employment Change (Forecast: -46.0K, Previous: 29.1K)

- Unemployment Rate (Forecast: 5.0%, Previous: 4.9%)

Reserve Bank of Australia Assistant Governor Kent will be speaking tomorrow at 0705 (GMT+8). During this time, there may be volatility in AUD.

Currently, AUD/USD is testing the support zone of 0.72200 and the next resistance zone is at 0.73300.

Look for short-term selling opportunities of AUD/USD if it breaks the support zone of 0.72200.

USD/JPY Outlook (19 August 2021)

Overall, USD/JPY is ranging across. Recently, USD/JPY strengthened after the release of the hawkish Federal Reserve meeting minutes.

Currently, USD/JPY is testing to break above the key level of 110. Its next support zone is at 108.500 and the next resistance zone is at 110.800.

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

EUR/USD Outlook (19 August 2021)

Overall, EUR/USD is ranging across. Recently, EUR/USD weakened after the release of the hawkish Federal Reserve meeting minutes.

Currently, EUR/USD is testing to break below the key level of 1.17. Its next support zone is at 1.16300 and the next resistance zone is at 1.17600.

Look for short-term selling opportunities of EUR/USD if it breaks below the key level of 1.17.

GBP/USD Outlook (19 August 2021)

Overall, GBP/USD is ranging across. Recently, GBP/USD weakened after the release of the hawkish Federal Reserve meeting minutes.

The UK CPI y/y data (Actual: 2.0%, Forecast: 2.3%, Previous: 2.5%) released yesterday indicated a slowdown in annual inflation but still in line with the Bank of Englands target.

GBP/USDs next support zone is at 1.36000 and the next resistance zone is at 1.38000.

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

USD/CAD Outlook (19 August 2021)

Overall, USD/CAD is ranging across. Recently, USD/CAD bounced off the support zone of 1.26100 after the release of the hawkish Federal Reserve meeting minutes.

The Canadian CPI m/m data (Actual: 0.6%, Forecast: 0.3%, Previous: 0.3%) released yesterday indicated that inflation rose faster in July than in June.

USD/CADs next support zone is at 1.26100 and the next resistance zone is at 1.28500.

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

GBP/JPY Outlook (19 August 2021)

Overall, GBP/JPY is ranging across.

The UK CPI y/y data (Actual: 2.0%, Forecast: 2.3%, Previous: 2.5%) released yesterday indicated a slowdown in annual inflation but still in line with the Bank of Englands target.

Currently, GBP/JPY is testing the resistance zone of 151.000 and the next support zone is at 148.900.

Look for short-term selling opportunities of GBP/JPY if it rejects the resistance zone of 151.000.

EUR/JPY Outlook (19 August 2021)

Overall, EUR/JPY is trending downwards.

Currently, EUR/JPY is testing the resistance zone of 128.500 and the next support zone is at 127.150.

Look for short-term selling opportunities of EUR/JPY if it rejects the resistance zone of 128.500.