Australia Construction Work Done (QoQ) Q3: -3.6% (exp -2.0% prev 1.6%)
PBoC Fixes Yuan Reference Rate At 6.3877 (prev 6.3888)
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The US Dollar weakened overnight as speculators are taking profit ahead of the Thanksgiving holiday tomorrow, when US markets will be closed. Weak consumer confidence data yesterday has put the USD under pressure and helped the other major currencies to recover, especially the Euro. EUR/USD rose to a high of 1.0675 in Asia, up roughly 80 pips from Monday’s low. The next notable resistance level is 1.0708. GBP/USD remains weak after dovish comments from BoE member Haldane. The pair fell to a low of 1.5055 yesterday, only 30 pips away from the early November low. It has bounced in Asia to a high of 1.5115, but short-term techs remain bearish.
USD/JPY had another sell-off in Asia, but found support at the 122.25 level. The key level to watch is 122.00 and a break beneath it is likely to trigger further short covering and pave the way for a 121 test. Meanwhile, the Aussie Dollar has benefited the most from the USD weakness and AUD/USD rallied to 0.7275. There is minor resistance at 0.73, but the next major obstacle is 0.7380.