03 June 2020 Afternoon Session Analysis
Dollar fell amid recovery prospect heightened risk.
The dollar index which traded against a basket of six major currency pairs have slipped during late Asian session as prospects of more government stimulus and a global economic recovery prompted investor to increase their portfolio on riskier assets. Despite with heightened concerns over U.S.-China tensions and unrest in many U.S. cities, the market tone remains optimistic on global recovery. In Australia, its central bank kept its interest rate and yield objectives unchanged, showing early signs of a recovery. Besides that, EU also shown improvement following recent stimulus package and also expected to further expand its stimulus. On data front, US manufacturing activity also bounced up from its 11-years low in May, increasing the narrative of economy turning upwards, overshadowing the tension between the U.S and China as well as violent protest in the U.S. Thus, these catalysts have pushed up investors’ appetite for more riskier assets, dragging the greenback lower. At the time of writing, dollar index fell 0.15% to 97.53.
In the commodities market, crude oil price extends its gains and soars 1.49% to 37.46 per barrel as of writing following as hopes for output cuts remain support the positive sentiment. A meeting of the grouping known as OPEC+ is expected to be held online on Thursday and OPEC and its allies including Russia may extend production cuts of 9.7 million barrels per day (bpd), or about 10% of global output into July or August. On the other hand, gold price slips 0.03% to $1726.98 a troy ounce amid heightening risk appetite.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 CAD BoC Rate Statement
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:55 | EUR – German Unemployment Change (May) | 373K | 200K | – |
| 16:30 | GBP – Composite PMI (May) | 28.9 | 28.9 | – |
| 16:30 | GBP – Services PMI (May) | 27.8 | 28.0 | – |
| 20:15 | USD – ADP Nonfarm Employment Change (May) | -20,236K | -9,000K | – |
| 22:00 | USD – ISM Non-Manufacturing PMI (May) | 41.8 | 44.0 | – |
| 22:00 | CAD – BoC Interest Rate Decision | 0.25% | 0.25% | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 7.928M | 3.300M | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 97.25. MACD which illustrated increasing bearish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 98.20, 99.00
Support level: 97.25, 96.25
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.2525. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2635, 1.2765
Support level: 1.2525, 1.2420
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level 1.1210. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1210, 1.1275
Support level: 1.1135, 1.1070
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 108.75. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 108.75, 109.90
Support level: 107.80, 106.40
AUDUSD, H1: AUDUSD was traded higher while currently testing the resistance level at 0.6950. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6950, 0.7010
Support level: 0.6850, 0.6735
NZDUSD, H1: NZDUSD was traded higher while currently testing the resistance level at 0.6435. MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6435, 0.6525
Support level: 0.6335, 0.6205
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.3485. MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3735, 1.3890
Support level: 1.3485, 1.3310
USDCHF, Daily: USDCHF was traded lower while currently testing the support level 0.9595. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9735, 0.9835
Support level: 0.9595, 0.9505
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 35.95. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 39.35.
Resistance level: 39.35, 43.00
Support level: 35.95, 33.90
GOLD_, H1: Gold price was traded lower following prior retracement from the resistance level at 1731.95. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 1731.95, 1743.00
Support level: 1723.20, 1712.15