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The dollar remained in positive regions as the US mid-term election results weigh ahead of the US CPI data on Thursday. Chinese consumer inflation slowed in October along with the Producer Price Index adding to global demand concerns and economic slowdown. Crude oil stockpiles are expected to continue rising as demand weakens which may soften oil prices.
AUDUSD was down -0.50% as investors await the key CPI data release from the US along with US mid-term election results. In October the government of Australia issued fewer building approvals than the previous month although it was more than anticipated at -5.8% vs -7.0% in September. Weak consumer inflation data from China which indicated a weak demand amid strict covid-19 curbs weighed on the risk-sensitive AUD. That said, the focus now shifts to the FOMC members lineup and 10-year note auction. The pair is capped by 0.6520 after establishing a low at 0.6484.
The EUR gained +0.68% against the NZD rising from the 1.6900 intraday support, breaching the 1.7000 psychological resistance. The NZD was weighed down by downbeat consumer prices data from China which showed weakness in the economy amid growing demand concerns. Further upside moves may be limited by a dampened risk-on mood as traders await US mid-term elections. Looking ahead German Buba members will be speaking including Beerman and Wuermeling. Bulls may face resistance at 1.7080 and 1.7120.
CADJPY trimmed -0.05% continuing its 3-day fall, weighed down by downbeat oil prices following weak demand in China. Forecasted high crude oil stocks may weigh down oil prices which may continue to put pressure on the CAD. Earlier in the Asian session the Japanese Adjusted Current Account rose to 0.67Trillion beating expectations of 0.01Trillion. Bank Lending in Japan rose to 2.7% against the 2.3% previous reading on a year-over-year basis. A move above 108.80 Tuesday’s high may give bulls 109.00 and 109.50 in the short term.
European stocks were mixed as the US inflation data release date comes close. FTSE100 rallied by +0.05% extending 2 days of gains after bulls bounced off the 7250 level. Upside gains remain challenged by the 7350 level and a break above that high could renew bullish interests towards the 7400 psychological level. CAC40 advanced by +0.12% although the index remains bound between the 6450 high and 6400 support. A breach of that high could see bulls target the 6600 level. DAX plunged by -0.53% underpinned by weaker oil prices, causing an end to a 3-days of gains. The bulls lost steam at the 13700 high and near-term support is at the 13500 level.
US stock futures are unchanged as investors digest US political uncertainty. S&P500 futures remained steady at +0.02% as bulls find near-term support above the 3800 level and near-term targets are at the 3900 level. The 4000 level remains a possible target if the 3900 barrier fails to hold. Nasdaq100 futures were higher by +0.11% adding to a 4-day rally and critical levels to watch out for are the 11200 resistance and 10900 support level. DJIA index futures were down by -0.17% trading above the 33000 level and upside gains are capped by the 33500.
Oil markets traded lower as weak Chinese demand and higher stockpiles weighed markets. The USWTI crude oil futures plunged by -0.60% to 88.00 near-term low and a break below that level could trigger selling pressure towards the 86.00 level. Brent Crude Oil futures dropped by -0.52% to 94.50 and critical levels at 98.80 resistance and 89.00 support.
