ASIAN MARKET

USD / JPY at key resistance, RBA rate decision could set market mood


Dow Jones, USD / JPY, RBA – Talking Points

  • the Dow Jones Industrial Average drives US stock indexes up
  • USD / JPY faces a key resistance level marked by last year’s low
  • RBA interest rate in effect for traders during the first session of December

U.S. stock indices retreated on Monday, but the Dow Jones Industrial Average still managed to close November with the highest monthly gain in more than three decades. The 11.84% increase is the best since January 1987. Stock prices have been supported by positive news from the Covid vaccine which is fueling hopes of a sharp economic comeback in 2021.

Outside of stocks, November was also a boon for Bitcoin. the vsryptocurrency recently passed its 2017 high and may continue to rise. Meanwhile, anti-fiat gold price fell almost 5.5% in November, the worst monthly performance since 2016. Interestingly, the US dollar managed to weaken alongside the precious metal. The DXY index fell just over 2% last month and is now trading below the 92 handle.

US Dollar, Bitcoin, Gold, Dow Jones – Daily Price Chart

Bitcoin, Gold, Dow, USD

Chart created with TradingView

Tuesday’s Asia-Pacific Outlook

Traders will look to take advantage of the recent strength seen in the markets at the start of trading in December. USD/JPY remains indebted to its descending channel following the volatility induced by Covid in March. However, the current price action is seeing some resistance at its 2019 lows. The 20-day moving average also appears to be putting pressure on price action.

The RBA’s decision on interest rates focuses on the programmed event risk front. According to the DailyFX economic calendar, no rate changes are expected. Economists have started to cover expectations of further rate cuts from Australia’s central bank after impressions of better-than-expected economic data over the past two months. Australia’s housing and labor markets appear to be performing quite well given current conditions.

USD / JPY Daily Price Chart

USDJPY Chart

Chart created with TradingView

USD / JPY TRADING RESOURCES

— Written by Thomas Westwater, Analyst for DailyFX.com

Contact Thomas, use the comments section below or @FxWestwateron Twitter



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