Market Remains Motionless, Australian Dollar Reinforcing
Since it’s a holiday season, no significant dynamic is seen at the market. DOW reduced -0.03% to 24746.21. S&P 500 fell -0.11% to end at 2680.50. Nikkei lifted some 0.1%. Australian Dollar is ready to be at the position of the firmest currency. Japanese yen has strongly weakened.
Aussie/Kiwi cross recommenced while moving towards the accumulation of support of 1.0823. Reversal is so far unlikely. If 1.1112 resistance is present, larger drop is possible. Firm breach of 1.0823 will cause deeper decline towards 1.0368 and maybe lower. Price dynamic from 1.1638 is a correction. Over 1.1112, the lift from 1.0368 will expand towards the test of 1.1638 resistance.
Meanwhile, Kiwi/Yen’s breach over 55 week EMA indicated that decline from 83.90 has finished at 76.08. The consolidation pattern from 83.76 has ended at 76.08. Medium term recoil from 68.88 should start unfolding. If 78.36 support stands, short term prognosis remains bullish. Repeat test of the 83.90 level is awaited. Breach in that area will suggest bullishness and align a test on the maximum of 94.01.
Today, Japan will release housing starts, Swiss will announce UBS consumption indicator, Britain will show BBA mortgage approvals and the US will present the important Conference Board consumer confidence.