3 February 2021 Morning Session Analysis
Aussie plunged following RBA further loosen its monetary policy.
Australian dollar which also broadly known as Aussie sank while lingering near the 1 month low level as Reserve Bank of Australia (RBA) decided to add further monetary support to the economy by increasing bond purchase with an additional $100 billion after the expiry of ongoing bond purchase programme in mid of April 2021. At the RBA meeting, board members agreed to maintain the cash rates at 0.10% while reiterating that the wages and prices pressures in Australia remain subdued due to the fallout of Covid-19. Besides, the board also emphasized that they will not increase the interest rate until the actual inflation is sustainably recover back to the target range of 2%-3%. However, Governor of RBA Philip Lowe revealed his optimism toward the future economic outlook by saying that the nation economic recovery has improved and stronger than expected over recent months due to the rollout of vaccines. Nonetheless, the path of the economy continues to depend significantly on the course of the virus, as well as the development of vaccination programme. As of writing, the pair of AUD/USD rebound 0.11% to 0.7615.
In the commodities market, the crude oil price appreciated by 0.02% to $55.10 per barrel amid consecutive draw of US crude oil inventories and ongoing oil cut production plan continue weigh on this black commodity product. According to the API, US crude oil stock reduced by 4.261M as of last week, while the economist forecast the inventory to increase by 0.367M. Besides, gold price depreciated by 0.02% to $1837.00 per troy ounce amid surging of market risk sentiment.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
16:00 ECB ECB Monetary Policy Statement
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Composite PMI (Jan) | 40.6 | 40.6 | – |
| 17:30 | GBP – Services PMI (Jan) | 38.8 | 38.8 | – |
| 18:00 | EUR – PPI (MoM)(Dec) | 0.4% | 0.7% | – |
| 21:15 | USD – ADP Nonfarm Employment Change (Jan) | -123K | 49K | – |
| 23:00 | USD – ISM Non-Manufacturing PMI (Jan) | 57.7 | 56.8 | – |
| 23:30 | CrudeOIL – Crude Oil Inventories | -9.910M | 0.446M | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 91.10. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses toward the support level at 90.60.
Resistance level: 91.10, 91.60
Support level: 90.60, 90.25
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.3620. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 1.3695.
Resistance level: 1.3695, 1.3750
Support level: 1.3620, 1.3535
EURUSD, H1: EURUSD was traded higher following prior rebound from the support level at 1.2020. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 1.2065.
Resistance level: 1.2065, 1.2100
Support level: 1.2020, 1.1985
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 105.15. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 104.70.
Resistance level: 105.15, 105.50
Support level: 104.70, 104.35
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the support level at 0.7565. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 0.7635.
Resistance level: 0.7635, 0.7670
Support level: 0.7565, 0.7505
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.7165. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.7240.
Resistance level: 0.7240, 0.7305
Support level: 0.7165, 0.7090
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.2790. MACD which illustrate bearish bias momentum signal suggest the pair to extend its losses toward the support level at 1.2695.
Resistance level: 1.2790, 1.2865
Support level: 1.2695, 1.2615
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.8985. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the support level at 0.8955.
Resistance level: 0.8985, 0.9020
Support level: 0.8955, 0.8915
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 54.50. MACD which illustrated bullish bias momentum suggest the commodity to extend its gains toward the resistance level at 55.40.
Resistance level: 55.40, 56.65
Support level: 54.50, 53.75
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level at 1842.90. MACD which illustrated bearish bias momentum suggest the commodity to extend its losses toward the support level at 1825.40.
Resistance level: 1842.90, 1861.75
Support level: 1825.40, 1803.40