Thursday brought ragged trade on the Asian stock markets from increases to declines at the end of the session. The currency market is quite stable, which means maintaining the strength of USD after yesterday's rally. GBP stands still after Prime Minister May has survived the vote of no confidence.
During the session in Asia, we have a continuation of indecision and lack of direction. The currency market stood in the place with the only distinction was a losing NZD - NZD / USD went down at 0.6750. USD / JPY did not manage to stay above 109 and returns to 108.85. EUR / USD is consolidating at 1.14.
In the stock market, we have a swing once up and down. The indexes dance around reference levels, but at the end of the session, declines prevail. Chinese Shanghai Composite loses 0.1% and Japanese Nikkei225 fell by 0.2%.
On Thursday, the 17th of January, the event calendar is light in important data releases, but the global investors should keep an eye on Consumer Price Index data from the Eurozone, BoE Credit Conditions Survey data from the UK, Continuing Claims and Unemployment Claims data from the US and ADP Non-Farm Employment Change data from Canada. Moreover, there are some speeches scheduled from FOMC Member Randal K. Quarles and Member of the Executive Board of the ECB Sabine Lautenschager.
AUD/USD analysis for 17/01/2019:
In Australia, the number of mortgage loans granted in November fell by 0.9% m/m against a forecast of -1.5% drop. This is another proof of the weakness of the real estate market in Australia, but it is certainly not a surprise and the AUD behave quite indifferently past the read.
The sales of a new home usually trigger a sequence of consumption. In addition to the high expenditure of the new home, buyers are likely to spend more money on furnishing and customizing their home. Consequently, growth in the housing market spurs more consumption, generating demand for goods, services and the employees to provide them. Thus an increase in loans may forecast growth in the economy.
Let's now take a look at the AUD/USD technical picture at the H4 time frame chart. The price has broken out of the channel and made a new local low at the level of 0.7135, just above the technical support at the level of 0.7144. If this level is violated, then the next target for bears is seen at the level of 0.7113. Please notice, the market conditions are now oversold and the momentum is weak, negative and points to the downside, which supports the short-term bearish bias.
