28.11.2019: Market sentiment worsens after Trump signs Hong Kong bill (USDX, USD/JPY, AUD/USD)


Today’s review of the Asian session will start quite unusually
with the news about the general election in the UK.
A widely expected YouGov/Times forecast on the results of the elections to the country’s Parliament was published.
YouGov suggests that Boris Johnson’s conservative party is likely to win
a substantial parliamentary majority in the UK’s general election.
Risk appetite weakened amid this news and the thin market as US traders left the trading floor to celebrate Thanksgiving day.
What is more, investors welcomed upbeat US economic data published yesterday.
A secondary estimate of GDP for the third quarter was revised up to 2.1%, and durable goods orders rose in October,
showing an increase in investment inflows into the domestic economy.
On the flip side, market sentiment was deteriorated by Donald Trump’s decision to interfere in China’s dispute with Hong Kong.
He signed into law a congressional bill backing the protesters in Hong Kong.
This move may have a negative impact on the ongoing US-China trade talks.
US stock market slid down amid this news.
The US dollar index, which tracks the greenback’s dynamics against a basket of six major currencies,
lost 0.03%, falling to the lower limit of the trading range at 98.30.
Versus the yen, the US dollar pulled back slightly to 109.40.
Traders continue to sell off the pair.
So, the pair may find support near the level of 108.90.
The AUD/USD pair is edging lower below the level of 0.6770.
Private capital expenditure in Australia was down by more than 0.1% in the third quarter.
Besides, the news about the intention of the RBA to cut the interest rate twice next year
triggered the sell-ff of the Australian currency.
The AUD /USD pair is moving to the support level at 0.6730.
In the European session, Germany will release preliminary inflation data for November.
Tomorrow traders will take notice of the Eurozone inflation data.
We continue to keep close tabs on market developments!
See you on your channel!
Bye!

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