02 January 2020 Afternoon Session Analysis
Aussie remain tested following weak data.
The Australian dollar which traded against the US dollar continue to hold its ground despite poor data from its main exporting partner China. According to Markit Economics, China Caixin Manufacturing PMI which display the health of China manufacturing sector came in at 51.5, weaker than market expectation of 51.7. Despite that, the Australian dollar continue to exert its resilience against the greenback as recent Australia labor data remains solid while the expectation of a rate cut from Reserve Bank of Australian (RBA) have fell back below 50% for the time being. Investors will now wait for further catalyst in order to determine the pair’s direction in the near term. At the time of writing, AUD/USD edged up 0.02% to 0.7004.
In the commodities market, crude oil price climbs 0.10% to $61.28 per barrel as of writing amid warming trade relations between the U.S and China which have helped eased investor’s concern towards future economic outlook and global demand. Next, gold price climbs 0.21% to $1520.13 a troy ounce at the time of writing as geopolitical risk continue to support the demand of the commodity.
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 following prior breakout below the previous support level 96.25. MACD which illustrated bearish momentum suggest the index to extend its losses toward support level at 95.45.
Resistance level: 96.25, 96.85
Support level: 95.45, 94.60
GBPUSD, H4: GBPUSD was traded lower following prior breakout below the previous support level at 1.3225. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward the support level at 1.3165.
Resistance level: 1.3225, 1.3315
Support level: 1.3165, 1.3085
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1240. MACD which illustrated bearish momentum and the formation of death cross suggest the pair to extend its losses toward the support level at 1.1170.
Resistance level: 1.1240, 1.1300
Support level: 1.1170, 1.1075
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 108.65. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 108.95.
Resistance level: 108.95, 109.25
Support level: 108.65, 108.45
AUDUSD, H4: AUDUSD was traded lower following prior breakout below the previous support level at 0.7005. MACD which illustrate bearish momentum suggest the pair to extend its losses toward the support level at 0.6965.
Resistance level: 0.7005, 0.7040
Support level: 0.6965, 0.6925
NZDUSD, H1: NZDUSD was traded lower following prior breakout below the previous support level at 0.6725. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 0.6695.
Resistance level: 0.6725, 0.6750
Support level: 0.6695, 0.6665
USDCAD, H1: USDCAD was traded higher while currently testing the resistance level at 1.2985. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after It successfully breakout above the resistance level at 1.2985.
Resistance level: 1.2985, 1.3020
Support level: 1.2935, 1.2895
USDCHF, H1: USDCHF was traded higher while currently testing the resistance level at 0.9690. MACD which illustrated bullish bias momentum suggest the pair to extend its gains after it successfully breakout above the resistance level at 0.9690.
Resistance level: 0.9690, 0.9725
Support level: 0.9660, 0.9610
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 61.15. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short term.
Resistance level: 62.00, 63.05
Support level: 61.15, 60.10
GOLD_, H1: Gold price was traded higher while currently testing the resistance level at 1520.25. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level at 1520.25.
Resistance level: 1520.25, 1530.05
Support level: 1513.55, 1507.75