13 May 2020 Afternoon Session Analysis
Kiwi plummets amid RBNZ dovish statement.
The New Zealand Kiwi which traded against the dollar and other currency pairs have experience a huge sell-off and fell during late Asian session after a dovish note from Governor of RBNZ Adrian Orr. According to report, despite with the central bank kept the official cash rate unchanged at 0.25% on early Wednesday, it has expanded the bond purchase program from $30 billion to $60 billion. Besides that, the central bank also stated that negative rates could potentially become an option in the future which validating Westpac’s forecast for below-zero rates by November. RBNZ Governor Adrian Orr have said that the central bank would do whatever it takes to support the economy. Meanwhile, central bank policymaker Geoff Bascand also added that commercial banks have been asked to prepare for negative rates by the end of the year. With the RBNZ reinforcing the expectation of negative rates, the economic outlook for New Zealand remains uncertain, thus dragging the kiwi. At the time of writing, NZD/USD fell 1.05% to 0.6013.
In the commodities market, crude oil price remains resilient and edge higher 0.43% to $25.98 per barrel at the time of writing despite with a rise in inventory level. According to API, U.S. crude oil inventories for the week ending May 8 have rose by 7.58 million barrels, higher than market expectation of 5 million barrels. However, a surprise announcement from Saudi Arabia which stated that it will cut a further 1 million bpd in June on top of its cuts agreed to with OPEC+ in early April have help support the market. In the other hand, gold price rose 0.03% to $1703.10 a troy ounce amid greenback weakness.
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 | GBP – GDP(QoQ)(Q1) | 0.0% | -2.5% | – |
| 14:00 | GBP – Manufacturing Production (MoM)(Mar) | 0.5% | -6.0% | – |
| 20:30 | USD – PPI (MoM)(Apr) | -0.2% | -0.5% | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 4.590M | 4.295M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 99.60. However, MACD which illustrated increasing bearish momentum suggest the index to be traded lower in short-term as technical correction.
Resistance level: 100.25, 100.85
Support level: 99.60, 98.75
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the support level at 1.2245. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.2285.
Resistance level: 1.2285, 1.2335
Support level: 1.2245, 1.2195
EURUSD, Daily: EURUSD was traded higher following prior rebound from the support level at 1.0780. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.0975.
Resistance level: 1.0975, 1.1080
Support level: 1.0780, 1.0655
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 107.05. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 107.75, 108.45
Support level: 107.05, 106.15
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.6560. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.6405.
Resistance level: 0.6560, 0.6685
Support level: 0.6405, 0.6230
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.6015. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6135, 0.6255
Support level: 0.6015, 0.5905
USDCAD, H4: USDCAD was traded higher following prior breakout above the previous resistance level at 1.4015. However, MACD which illustrated diminishing bullish momentum suggest the pair to extend its gains toward resistance level at 1.4155.
Resistance level: 1.4155, 1.4230
Support level: 1.4015, 1.3875
USDCHF, Daily: USDCHF was traded lower following prior retracement from the resistance level at 0.9760. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9760, 0.9880
Support level: 0.9585, 0.9495
CrudeOIL, H4: Crude oil price was traded within a range while currently testing the resistance level at 26.15. However, MACD which illustrated increasing bearish momentum suggest the commodity to be traded lower in short-term.
Resistance level: 26.15, 29.95
Support level: 22.80, 19.30
GOLD_, H4: Gold price was traded lower following prior retracement from the resistance level at 1706.95. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 1706.95, 1720.70
Support level: 1693.90, 1683.45