20 April 2020 Afternoon Session Analysis
Aussie slips despite PBoC rate cut.
The Australian dollar which traded against the greenback and its peer have fell during late Asian session following with the latest rate from China’s central bank PBoC. According to their latest decision, People’s Bank of China (PBoC) held its benchmark interest rates steady, defying market forecasts amid widespread disruptions to businesses and activity from the COVID-19 crisis. However, it reduced the one-year loan prime rate to 3.85% from 4.05% and the five-year rate to 4.65% from 4.75%. The central bank was also expected to cut the borrowing costs the contain the economic fallout from coronavirus outbreak. investors are still not impressed with the rate cut as the Aussie continue to track on broader risk-off sentiment. Besides that, the economic restart in the U.S also dragged down further the risk tone which also affected the Chinese-sensitive currency at the same time. At the time of writing, AUD/USD fell 0.37% to 0.6341 while dollar index edge higher 0.11% to 99.93.
In the commodities market, crude oil price plummets 15.75% to $15.30 per barrel as of writing as weak oil consumption. In the latest report, the volume of oil held in U.S. storage, especially at Cushing, Oklahoma is rising due to a big drop in demand. At the same time, investors remain unconvinced that OPEC+’s cut of nearly 10 million barrels agreed to in early April will ease oversupply. On the other hand, gold price retreats and fell 0.09% to $1682.45 a troy ounce at the time of writing following dollar rebound.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | EUR – German PPI (MoM)(Mar) | -0.4% | -0.7% | – |
| 17:00 | EUR – Trade Balance (Feb) | 1.3B | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded flat near the MA lines. Due to lack of clear direction and momentum from MACD, it is suggested to wait until further signal appear before entering the market.
Resistance level: 101.94, 103.75
Support level: 98.75, 96.40
GBPUSD, H4: GBPUSD was traded flat while currently testing the support level at 1.2465. However, due to lack of clear direction and momentum from MACD, it is suggested to wait until further signal appear before entering the market.
Resistance level: 1.2750, 1.3015
Support level: 1.2465, 1.2230
EURUSD, H4: EURUSD was traded lower following prior retracement from the MA line. However, due to lack of momentum and clear direction from MACD, it is suggested to wait until further signal appear before entering the market.
Resistance level: 1.0910, 1.1150
Support level: 1.0825, 1.0765
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 107.10 MACD which illustrated bullish bias signal with the formation of golden cross suggest the pair to extend its rebound towards the resistance level 109.10.
Resistance level: 109.10, 111.45
Support level: 107.10, 105.55
AUDUSD, H4: AUDUSD was traded flat near the MA lines. Due to lack of clear direction and momentum from MACD, it is suggested to wait until further signal appear before entering the market.
Resistance level: 0.6450, 0.6660
Support level: 0.6190, 0.5970
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level 0.6060. MACD which illustrate bullish momentum signal with the formation of golden cross suggest the pair to extend its gains after it breaks above the resistance level 0.6060.
Resistance level: 0.6060, 0.6365
Support level: 0.5840, 0.5580
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level 1.3975. MACD which illustrate diminishing bearish momentum suggest the pair to extend its rebound towards the resistance level 1.4260.
Resistance level: 1.4260, 1.4550
Support level: 1.3975, 1.3735
USDCHF, H4: USDCHF was traded flat near the MA line. However, MACD which illustrate bearish bias signal the pair to be traded lower towards the support level 0.9600.
Resistance level: 0.9720, 0.9795
Support level: 0.9600, 0.9505
CrudeOIL, H4: Crude oil price was traded higher while currently testing near the resistance level 24.85. MACD which illustrate ongoing bullish momentum suggest the commodity to extend its gains after it breaks above the resistance level 24.85.
Resistance level: 24.85, 29.05
Support level: 20.00, 15.00
GOLD_, H4: Gold price was traded lower while currently testing near the support level 1672.90 However, MACD which illustrate diminishing bearish momentum suggest the commodity to experience a technical correction towards the resistance level 1736.00.
Resistance level: 1736.00, 1789.10
Support level: 1672.90, 1633.30