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Risk starts the new year where it left off

jeffriess
January 2, 2020
by Joseph Jeffriess, Market Analyst

Article Recap

Risk mainly higher into 2019 - USDCAD continues in the red after Tuesday's sell-off - Is the US30 starting to set up a new move to test last years records?

Happy New Year, risk markets start the new year in the positive.

Today risk currencies have overcome softer starts to pick back up on the buying we saw that ended 2019. Demand has been across the main risk majors to the JPY and USD.

The GBP finished the year on a real positive adding 1.14% to the USD and 0.96% to the JPY. The EUR fell to the JPY on its last trading day of 2019 but held gains to the USD after a late fade. The AUD added 0.32% to the USD and 0.13% to the JPY. The final month of 2019 was also a very bullish affair for risk solid gains seen mainly to the USD from risk currencies.

December performances;

AUDUSD +3.68% AUDJPY +2.92%

EURUSD +1.69% EURJPY +0.92%

GBPUSD +2.70% GBPJPY +1.92%

With all the movement we saw from the GBP in December due to the election and Brexit it’s a bit surprising to the AUDUSD posted the best gains out of the risk majors.

Sor far today risk majors continue to trade higher to the USD and JPY, Caixin manufacturing data came in just below expectations, the AUDJPY has turned into the negative but the AUD, EUR and GBP remain in the positive to the USD. The USDCAD dropped 0.61% ending the year deep in red breaking the July low. Sellers have been active today pushing price a further 0.11% lower.

US stocks finished the year in the positive, the Dow +0.27%, the Nasdaq +0.30%. The ASX200 nose-dived ending the year with a 1.70% loss. The ASX200 is seeing small gains to start the year currently 0.15% higher, the Nikkei remains closed for a bank holiday.

Looking at the US30 daily chart, buyers have made the first early move in a possible continuation we would like to see buyers continue the idea with a close above 28,650 – 28,680 pushing a confirmation case.

Oil ended the year in red dropping 0.92%, after a stronger open this morning sellers a currently starting to test that higher move. Gold finished the year on a volatile note, buyers hitting 0.72% gains before sellers stepped in trimming it back to 0.17%. Today buyers started the day with a 0.25% gap higher. Sellers continue to test the gap, price 0.11% lower.

No high impact data or news due in tonight’s LON and NY sessions. The UK will report final manufacturing PMI at 20:30 and the Swiss will observe a bank holiday.

Good trading from Eightcap.
All times are AEDT.