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Forex Trading StrategiesUSDJPY still unable to find upside in Asia
USDJPY remains above 115.50 in Asia, but Japanese exporters showed offers after the fixing in the high 116's, so look to sell on rallies in the upcoming trading day for a break of 115.10 further out.
MAJOR HEADLINES – PREVIOUS SESSION
• The New Zealand trade deficit came in at NZD 1.2bln versus an expectation of NZD 760 mln and a prior outcome of NZD 880 mln.
• The Australian dollar rose to its highest in almost 3 weeks as the price of some commodities the country exports climbed to a record.
• Australia, the world's biggest supplier of coal, iron ore, and alumina, last month increased its forecast for commodity export earnings by 2.6%
• GBP rose against the dollar after a central bank report showed home-loan approvals reached an 18-month high in November, reinforcing hopes that the housing market had stabilized.
• Swiss policy makers suggested they may prevent the currency from appreciating and a report showing inflation stayed at half the central bank's limit in December.
• The report may give policy makers scope to stick to their goal of raising rates "gradually.''
• Consumer prices rose 1% from a year earlier and fell 0.1% from November, the Swiss government said yesterday.
THEMES TO WATCH – UPCOMING SESSION
• At 1.30pm GMT
Initial Jobless claims would likely show 200,000 jobs created last month as executives gained confidence about growth and workers displaced by hurricanes continued to find work, according to estimates.
• 3:00pm GMT ISM Non Manufacturing
data for Dec expected to come out at 59.0 a slight increase from the prior 58.5, which would show US service industries expanding at a faster pace last month as more jobs and rising incomes gave Americans the means to keep spending.
• 3:00pm GMT Pending home sales MoM
for November period to have declined 1.0%, after falling 3.2% in the previous month. This would be the 3rd decline and would indicate a cooling in the 5 year housing boom that is helping fuel the economic boom in the US.
USD/majors may stall a bit ahead of Friday's Nonfarm Payrolls and unemployment rate, but it will likely give us confirmation to where the USD is heading until Jan 31 where the Fed is expected to raise rates 25-basis points to 4.50%.
Note: the support/resistance levels used in the matrix’s of this document are levels derived from yesterday high, low and close. Reference in the text to other support/resistance levels will occur.
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