7 November 2018 Morning Session Analysis
Dollar subdued as mid-term results trickle in.
US dollar was traded lower against its rivals on Wednesday as investors shifted their focus towards US mid-term election results. As of writing, the dollar index was quoted down 0.02% to 95.97 during Asian trading session. According to some analysts, Republican stands a higher chance to gain its footing within the Senate and they may continue to implement their fiscal measures which includes a potential for second round of tax cuts and infrastructure spending program that may boost inflation and supports the currency. In addition, the greenback was kept on its backfoot following bearish employment data released on yesterday. According to US Labor Department, JOLTs Job Openings, a measure of labor demand fell to 7.009 million for the month of September, missing economist forecast for 7.100 million. For the time being, investors would continue to monitor the results which is expected to conclude during Asian session. On the other hand, pair of NZD/USD spiked up 1.18% to 0.6740 following bullish employment data from the region. For third quarter, New Zealand employment change rose to 1.1%, significantly higher than forecast of 0.5%. At the same time, the unemployment rate slipped from 4.5% to 3.9%, its lowest level in a decade.
As for commodities market, crude oil price tumbled 0.77% to $61.77 per barrel after reports showed that eight importers of Iranian crude such as China, India and South Korea will be allowed to purchase from the country “temporarily”. The report has dialed down market expectation that US-led sanction against Iran may cause crude supply disruption. Otherwise, gold price rose 0.06% to $1,227.78 a troy ounce following weaker dollar and higher uncertainty that stems from US mid-term election.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
04:00 (8th) NZD RBNZ Rate Statement
05:00 NZD RBNZ Press Conference
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 15:00 | EUR – German Industrial Production (MoM) (Sep) | -0.3% | 0.1% | – |
| 18:00 | EUR – Retail Sales (MoM) (Sep) | -0.2% | 0.1% | – |
| 23:00 | CAD – Ivey PMI (Oct) | 50.4 | 50.9 | – |
| 23:30 | CrudeOIL – Crude Oil Inventories | 3.217M | 2.433M | – |
| 04:00 (8th) | NZD – RBNZ Interest Rate Decision | 1.75% | 1.75% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing at the upward trendline. MACD which illustrate bearish signal suggests the index to extend its losses after successfully breaking the upward trendline.
Resistance level: 96.20, 96.60
Support level: 95.95, 95.55
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support of 1.2955. MACD which illustrate bullish signal suggests the pair to extend its gains in short-term, towards the target of 1.3175.
Resistance level: 1.3175, 1.3275
Support level: 1.3100, 1.3015
EURUSD, H4: EURUSD was traded higher following prior breakout from the downward trendline. MACD which begins to illustrate golden cross signal suggests the pair to extend its gains, towards the direction of 1.1485.
Resistance level: 1.1485, 1.1540
Support level: 1.1415, 1.1385
USDJPY, H4: USDJPY was traded lower while currently testing at the support level of 112.95. MACD which begins to form a death cross signal suggests the pair to extend its losses after breaking the support level near 112.95.
Resistance level: 113.30, 113.85
Support level: 112.95, 112.60
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the 20-MA line (red). MACD which begins to form a golden cross signal suggests the pair to extend its gains after closing above the resistance of 0.7250.
Resistance level: 0.7250, 0.7275
Support level: 0.7205, 0.7170
NZDUSD, H4: NZDUSD was traded higher following prior breakout from the resistance of 0.6700. MACD which begins to form a golden cross signal suggests the pair to extend its gains in short-term, towards the target near 0.6805.
Resistance level: 0.6805, 0.6850
Support level: 0.6735, 0.6700
USDCAD, H4: USDCAD remains traded within an ascending channel while currently testing at the 20-MA line (red). MACD which illustrate diminishing upward momentum suggests the pair to extend its losses after closing below the 20-MA line (red).
Resistance level: 1.3115, 1.3155
Support level: 1.3080, 1.3050
USDCHF, H4: USDCHF was traded lower while currently testing at the upward trendline. MACD which illustrate bearish signal suggests the pair to extend its losses after successfully breaking the trendline.
Resistance level: 1.0025, 1.0055
Support level: 0.9990, 0.9960
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the lower levels. MACD which illustrate diminishing downward momentum suggests its prices to experience technical correction and to be traded higher in short-term.
Resistance level: 62.50, 63.80
Support level: 61.05, 60.00
GOLD_, H1: Gold price was traded higher following prior rebound from the upward trendline. MACD which illustrate diminishing downward momentum suggests its price to extend its gains after closing above the 20-MA line (red).
Resistance level: 1237.25, 1242.10
Support level: 1228.00, 1215.95