14 May 2020 Afternoon Session Analysis
Kiwi extend losses after NZ budget.
The New Zealand Kiwi which traded against the dollar and other currency pairs have resume its decline during late Asian session after the release of New Zealand budget. According to the report, the annual forecast statement predicts net debt will surge to 53.6% of GDP by 2023. Besides that, officials in New Zealand also expected that the jobless rate in the country will jump to 8.3% in the year ending June 2020 and will peak at 9.8% in September 2020. The expectation of decline in both the growth rate and labour market could reaffirm further expectation on the Reserve Bank of New Zealand to implement negative rates. Westpac also thinks the central bank would cut rates below zero in November, thus adding pressure for the Kiwi. At the time of writing, NZD/USD fell 0.10% to 0.5982.
In the commodities market, crude oil price mixed and edge lower 0.64% to $25.40 per barrel at the time of writing following lingering demand concerns continue to weigh on market. Despite a surprise decrease in inventories reported by EIA, weak demand and second wave such as recent case spike in China and South Korea are continuing to raise investor fears that storage tanks will fill up faster than expected. In the other hand, gold price remains resilient and rose 0.05% to $1715.13 a troy ounce amid heightening risk-aversion mood.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:15 CAD BoC Gov Poloz Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Initial Jobless Claims | 3,169K | 2,500K | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded higher while currently testing the resistance level at 100.25. However, MACD which illustrated diminishing bullish 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 lower while currently testing the support level at 1.2195. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2250, 1.2290
Support level: 1.2195, 1.2120
EURUSD, Daily: EURUSD was traded lower while currently testing the support level at 1.0795. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.0975, 1.1080
Support level: 1.0795, 1.0655
USDJPY, H1: USDJPY was traded lower while currently testing the support level at 106.80. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 107.75, 108.45
Support level: 106.80, 106.15
AUDUSD, Daily: AUDUSD was traded lower while currently testing the support level at 0.6405. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6560, 0.6685
Support level: 0.6405, 0.6235
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.5985. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6135, 0.6255
Support level: 0.5945, 0.5925
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level at 1.4005. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.4155, 1.4265
Support level: 1.4005, 1.3865
USDCHF, Daily: USDCHF was traded lower following prior retracement from the resistance level at 0.9755. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9755, 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 26.70. MACD which illustrated increasing bearish moment suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 26.70, 30.75
Support level: 22.90, 18.50
GOLD_, H4: Gold price traded lower following prior retracement from the resistance level at 1717.45. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward support level at 1701.75.
Resistance level: 1717.45, 1731.35
Support level: 1701.75, 1689.40