News & Data:
Asian stock indices are mostly higher this morning and commodities recovered a bit overnight. WTI Oil is back above $50, while Gold and Silver both posted a double bottom at $1190 and $16.10 respectively. Silver may run into decent resistance in the $16.70-80 area, while the next level to keep an eye on in Gold is $1215.
In FX, USD is still offered across the board. NZD received a boost by the better than expected NZ trade balance data and briefly traded above the 0.7570 resistance level. Momentum waned quickly and the pair is currently consolidating near the level. Meanwhile, AUD/USD declined on weaker than expected Private CapEx data, reaching a low of 0.7834 overnight. Short-term techs are still fairly bullish as long as the pair remains above 0.78.
EUR/USD still very quiet, with the intraday ranges getting smaller. 1.1320 seen as intraday support, while decent offers are expected in front of the 1.14 level. GBP/USD had a decent bounce off the former resistance level at 1.5470 yesterday, which signals that further gains are ahead. Next resistance is seen at 1.5620, which is the December 31st high.
Looking at the econ calendar, there is a busy day ahead of us. In the EU session, the focus will be on German employment data and UK GDP. In the US session, we will get US and Canadian inflation numbers. See the calendar below for further details.