EURUSD started the day on a positive note, close to the 1.184 area, with an open at 1.18304. With the ADP report on sight, the pair keeps scoring gains.
Hovering above the 1.18 neighbourhood, which secures decent support, EURUSD gains pace on Wednesday as the demand for the single currency is slightly on the rise.
EURUSD Eyes ADP
After shedding some pips on a 3-day basis, the single currency – greenback pair seems to have found moderate support in the positive territory near 1.1800 (1.1811(S2)), after hitting a low at 1.18006 on Tuesday. EURUSD rebounds, trading now around 1.18222 and above.
Ahead of the US ADP report, the greenback remains offered, which has helped the pair move up before the opening bell tolls on the Old Continent.
The US dollar index (DXY) shows the struggle of the buck against resistance at 93.40/40 and it seems to need of a strong catalyst to move upward.
Every Wednesday, investors are keeping an eye on the crude oil inventories due later in the day. Oil prices dropped on Wednesday as refined product inventories in the US have seen a rise in what the market interpreted as a sign of weak demand.
Consequently, US WTI crude started the day on the backfoot at $57.43 per barrel, down almost 0.4% from its last settlement.
Brent crude, the international benchmark for oil prices, also lost nearly 0.4%, trading at $62.78 per barrel, following an open at $62.48 per barrel.
Traders say that a report released by the American Petroleum Institute (AI) showing a 9.2-million-barrel rise in gasoline stocks in the week ending December 1 triggered the oil price dips.
Outside the US, analysts suggest that a supply cut led by OPEC and Russia, expected to extend throughout the whole of next year, triggered a 40% rise in Brent crude since June. With the supply cuts likely to last throughout 2018, analysts say that crude prices are well supported.
“Robust global demand and tight supplies should see Brent crude oil rise to $70 per barrel by mid-year (2018),” Bank of America Merrill Lynch (NYSE: BAC) highlighted in its 2018 outlook.
AUD Tracking Q3 GDP
Following Australia’s Q3 GDP release, AUDUSD ditched to 3-day lows trough in the 0.757 territory, early in the Asian session and seems to consolidate the sell-off as we advance towards the European opening bells.
The pair is in the red zone and the bearish trend in the Aussie gained pace as the Q3 GDP figures showed an expansion of 0.6% against a 0.9% increase seen in Q2 and 0.7% consensus.
Following an open at 0.76041, AUDUSD trades now around 0.75803. Support is to be expected around 0.7519(S2) and 0.7549(S1), followed by resistance at 0.7602(R1), 0.7632 (R2) and 0.7658(R3).