31 January 2019 Afternoon Session Analysis
AUD rallies, Fed preaches patience.
Australian dollar extended its gains against greenback following the release of bullish economic data from China. As of writing, pair of AUD/USD rose 0.30%, last seen around 0.7267. For the month of January, China’s Manufacturing PMI came in higher than expected with 49.5 versus forecast of only 49.3. Similarly, Non-Manufacturing PMI for the same month expanded to 54.7, significantly higher than prior reading of 53.8. As China is Australia’s main trade partner, any economic signal from the region could bring an impact upon AUD pairs. Elsewhere, US dollar extended its losses during afternoon trading session following dovish stance taken by the Federal Reserve. The central bank ditched its preference to “gradually” raising interest rates while reiterating to hold off in the case of a global economic slowdown and muted inflation pressure. Against a basket of six major currencies, the dollar index was down 0.11% to 94.92.
In the commodities market, crude oil price skyrocketed 0.78% to $54.47 per barrel. Oil prices extends its gains for third session following signs of tightening supply in the United States while Saudi Arabia continues to trim its oil exports. On the other hand, gold price ticked up 0.02% to $1,319.40 a troy ounce following weaker US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 16:55 | EUR – German Unemployment Change (Jan) | -14K | -11K | – |
| 18:00 | EUR – GDP (QoQ) | 0.2% | 0.2% | – |
| 18:00 | EUR – Unemployment Rate (Dec) | 7.9% | 7.9% | – |
| 21:30 | USD – Initial Jobless Claims | 199K | 215K | – |
| 21:30 | CAD – GDP (MoM) (Nov) | 0.3% | -0.1% | – |
| 23:00 | USD – New Home Sales (Nov) | 544K | 560K | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower following prior closure below 95.00. MACD which illustrate persistent bearish signal suggests the index to extend its losses, towards the direction of 94.60.
Resistance level: 95.00, 95.30
Support level: 94.60, 94.25
GBPUSD, H4: GBPUSD was traded higher while currently testing at the resistance of 1.3125. MACD which illustrate diminished downward momentum suggests the pair to extend its gains after closing above 1.3125.
Resistance level: 1.3125, 1.3230
Support level: 1.3060, 1.2990
EURUSD, Daily: EURUSD was traded higher while currently testing at the resistance of 1.1515. MACD which illustrate bullish signal suggests the pair to advance further upwards after successfully closing above 1.1515.
Resistance level: 1.1515, 1.1585
Support level: 1.1445, 1.1415
USDJPY, H4: USDJPY was traded lower following prior breakout from the upward trendline. MACD which illustrate bearish signal suggests the pair to extend its losses, towards the direction of 108.25.
Resistance level: 108.95, 109.35
Support level: 108.25, 107.50
AUDUSD, H4: AUDUSD was traded higher while currently testing near the resistance of 0.7275. MACD which illustrate bullish signal suggests the pair to advance further upwards after successfully breaking the target at 0.7275.
Resistance level: 0.7275, 0.7360
Support level: 0.7170, 0.7070
NZDUSD, H1: NZDUSD was traded higher following prior rebound from the support at 0.6890. However, MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6940, 0.7000
Support level: 0.6890, 0.6820
USDCAD, H4: USDCAD was traded lower while currently testing near the support level of 1.3120. MACD which illustrate bearish signal suggests the pair to advance further downwards after successfully closing below 1.3120.
Resistance level: 1.3175, 1.3220
Support level: 1.3120, 1.3070
USDCHF, H4: USDCHF was traded lower while currently testing near the support level of 0.9920. MACD which begins to form a death cross signal suggests the pair to extend its losses after closing below 0.9920.
Resistance level: 0.9970, 1.0000
Support level: 0.9920, 0.9875
CrudeOIL, H1: Crude oil price was trade flat near the support level at 54.40. MACD which begins to form a death cross signal suggests its prices to be traded lower in short-term as technical correction.
Resistance level: 55.20, 56.30
Support level: 54.40, 53.70
GOLD_, H1: Gold price was traded higher while currently testing near the resistance of 1321.20. MACD which illustrate bullish signal suggests its prices to advance further upwards after successfully breaking the resistance of 1321.20.
Resistance level: 1321.20, 1332.00
Support level: 1313.80, 1305.40