01 December 2020 Afternoon Session Analysis
Dollar recovers on monetary easing hopes.
During late Asian session, the dollar index which traded against a basket of six major currency pairs have recover some of its losses and rebound following expectation of more monetary easing measures from Fed provided a boost for the greenback. Recent encouraging data from COVID-19 vaccine developers have driven investors towards riskier currencies and higher-yielding assets outside the U.S which have led to a shortage of dollars. Fed Chairman Jerome Powell will testify before Congress later in the day and on Wednesday, ahead of the central bank’s policy meeting on Dec. 15 and 16. Investors remain hopeful with expectations that Fed will step in to boost the economy. Dallas Fed President Robert Kaplan recently stated that the central bank is open-minded about shifting or expanding its bond buying program but have yet determine the time for the plan. At the time of writing, dollar index rose 0.03% to 91.78.
In the commodities market, crude oil price slips 0.04% to $44.99 per barrel at the time of writing amid OPEC talks delayed which raised supply concerns. According to sources from Reuters, OPEC+ delayed their talks on output policy for next year until Thursday as key players were still in disagreement on how much oil they should pump amid weak demand. On the other hand, gold price remains weak and edge lower 0.11% to $1781.98 a troy ounce at the time of writing as risk sentiment remain high on vaccine news.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
11:30 AUD RBA Rate Statement
23:00 USD Fed Chair Powell Testifies
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 11:30 | AUD – RBA Interest Rate Decision (Dec) | 0.10% | 0.10% | – |
| 16:55 | EUR – German Manufacturing PMI (Nov) | 57.9 | 57.9 | – |
| 16:55 | EUR – German Unemployment Change (Nov) | -35K | 10K | – |
| 17:30 | GBP – Manufacturing PMI (Nov) | 55.2 | 55.2 | – |
| 18:00 | EUR – CPI (YoY)(Nov) | -0.3% | -0.2% | – |
| 21:30 | CAD – GDP (MoM)(Sep) | 1.2% | 0.9% | – |
| 23:00 | USD – ISM Manufacturing PMI (Nov) | 59.3 | 57.9 | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 91.75. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 94.00, 95.85
Support level: 91.75, 90.15
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the support level at 1.3310. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3390.
Resistance level: 1.3390, 1.3475
Support level: 1.3310, 1.3220
EURUSD, H1: EURUSD was traded higher following prior rebound from the support level at 1.1925. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.1970.
Resistance level: 1.1970, 1.2010
Support level: 1.1925, 1.1885
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 104.30. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 104.65.
Resistance level: 104.65, 104.95
Support level: 104.30, 103.85
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7405. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.7320.
Resistance level: 0.7405, 0.7495
Support level: 0.7320, 0.7220
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.7035. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7035, 0.7110
Support level: 0.6915, 0.6820
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level at 1.2960. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3030.
Resistance level: 1.3030, 1.3095
Support level: 1.2960, 1.2875
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9035. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9065, 0.9095
Support level: 0.9035, 0.9010
CrudeOIL, H1: Crude oil price was traded lower following prior retracement from the resistance level at 45.50. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 44.60.
Resistance level: 45.50, 46.20
Support level: 44.60, 43.70
GOLD_, H1: Gold price was traded higher while currently testing the resistance level at 1784.25. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1784.25, 1806.45
Support level: 1762.45, 1740.65