• To pay more attention to cross-cyclical and counter-cyclical adjustment
• Will replenish monetary policy toolkit accordingly
• Will strive to foster sound monetary and financial environment
• To keep yuan exchange rate basically stable
• Will better support expanding domestic demand

This reaffirms their current policy stance as they are continuing to try and bolster conditions to support the economic recovery. Personally though, I still hold some reservations about the improving domestic demand in China as it has been crushed quite badly from early to middle of this year.

This article was written by Justin Low at www.forexlive.com.

• Prior -36

Sales continue to fall in November but at least the outlook for UK retailers are more optimistic than it was before. The outlook index improved to +4 from -14 in August. However, the headline reading still marks a seventh consecutive negative reading for retail sales. And that shows the squeeze is continuing for UK households even ahead of the Christmas shopping season.

This article was written by Justin Low at www.forexlive.com.

Dow Jones Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Dow Jones is
getting closer to the cycle high at 35680 as this November rally just doesn’t
want to let up. The sellers are likely to start looking for a deeper pullback
around these levels, but it’s hard to fight such a strong bullish train without
a catalyst.

We can notice that the price is a bit overstretched
as depicted by the distance from the blue 8 moving average. In such
instances, we can generally see a pullback into the moving average or some
consolidation before the next move.

Dow Jones Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that
the price has been diverging with
the MACD for
quite some time now. This is generally a sign of weakening momentum often
followed pullbacks or reversals. In this case, it might be a signal that we
could indeed see at least a pullback very soon.

Dow Jones Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see even
better the divergence with the MACD which has been going on since the break
above the key resistance around
the 34000 level. The buyers are likely to continue to lean on the minor trendline and
the red 21 moving average to
target the cycle high. The sellers, on the other hand, will want to see the
price breaking lower to pile in and target first the low around the 34800 level
and upon a further break, the support at 34000.

Upcoming Events

Tomorrow, we have the US Consumer Confidence report. On
Thursday, we will see the latest US Jobless Claims figures and the US PCE
report. On Friday, we conclude the week with the US ISM Manufacturing PMI which
missed expectations by a big margin the last time.

This article was written by FL Contributors at www.forexlive.com.

The antipodeans are the ones doing some work to start the new week, with AUD/USD testing waters near 0.6600 now and eyeing a stronger technical break as seen here. And NZD/USD is also facing a somewhat similar scenario as it runs up against its own 200-day moving average (blue line) at 0.6090 today.

The key level is still holding back price action for now but a firm break above that will allow for buyers to sail past 0.6100 in search of a potential return towards the April, May, and July highs. There’s not much resistance stopping the pair from doing so after a break of the key level highlighted above.

For today, the aussie and kiwi strength comes despite more tepid risk sentiment in broader markets. Equities are sitting slightly lower but that’s not hindering traders from going in search of a technical break. And that says a lot about the current momentum in both AUD/USD and NZD/USD as we head into November month-end.

This article was written by Justin Low at www.forexlive.com.