02 January 2020 Morning Session Analysis
Dollar index fall as trade tension eases.
Dollar index which measures the currency against a basket of rivals slumped on Tuesday amid easing trade tensions between U.S. and China, spurring some risk-on sentiment in the FX market while diminishing the demand for the safe-haven asset such as the Greenback. According to Reuters, U.S. President Donald Trump claimed on Tuesday that the first phase of an American trade deal with China would be signed on 15th January 2020 at the U.S. White House, though considerable confusions remains about the details of the agreement. Besides that, the dollar index received a further bearish momentum following the bleak data from the United States was released. According to Conference Board, U.S. CB Consumer Confidence notched down from the previous reading of 126.8 to 126.5, missing the economist forecast at 128.2. Such negative data has dialed down the market optimism towards the economic progression in the United States, which spurring some selloff for the Greenback. On the other hand, the trade-sensitive currency such as the New Zealand dollar surged on Tuesday as the acceleration of risk appetite in the FX market with the concern of U.S.-China trade relationship significantly better. However, investors would still continue to scrutinize the latest updates with regards of the U.S.-China trade deal in order to obtain further trading signal until the trade problem has resolved completely. As of writing, the dollar index surged 0.06% to 96.09 while the New Zealand dollar appreciated by 0.21% to 0.6732.
In the commodities market, the crude oil price was traded flat at $61.12 per barrels. The oil market was traded lower on Tuesday as investor worried over the future outlook for crude oil demand in the year of 2020. On the other hand, the gold price surged 0.19% to $1519.30 per troy ounces as of writing amid to weaker greenback.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
03:00 USD FOMC Meeting Minutes
(3rd)
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:55 | EUR – German Manufacturing PMI (Dec) | 43.4 | 43.4 | – |
| 17:30 | GBP – Manufacturing PMI (Dec) | 48.9 | 47.6 | |
| 21:30 | USD – Initial Jobless Claims | 222K | 227K | |
| 22:45 | USD – Manufacturing PMI (Dec) | 52.5 | 52.5 |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 95.95. MACD which illustrated increasing bearish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 96.50, 96.95
Support level: 95.95, 95.40
GBPUSD, H4: GBPUSD was traded higher after it successfully breakout above the previous resistance level at 1.3225. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3320, 1.3415
Support level: 1.3225, 1.3105
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.1220. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1220, 1.1270
Support level: 1.1160, 1.1120
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 108.65. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 108.90.
Resistance level: 108.90, 109.35
Support level: 108.65, 108.45
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7020. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7020, 0.7055
Support level: 0.6965, 0.6925
NZDUSD, Daily: NZDUSD was traded higher while currently near the resistance level at 0.6755. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6755, 0.6825
Support level: 0.6665, 0.6600
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.2970. However, MACD which illustrated diminishing bearish momentum suggest the pair to be trade higher in short-term as technical correction.
Resistance level: 1.3045, 1.3110
Support level: 1.2970, 1.2900
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9670. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9730, 0.9790
Support level: 0.9670, 0.9585
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 61.15. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 61.95.
Resistance level: 61.95, 63.10
Support level: 61.15, 60.25
GOLD_, Daily: Gold price was traded higher following prior breakout above the previous resistance level at 1512.45. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 1531.60, 1556.85
Support level: 1512.45, 1488.25